DEFENSE METALS SETTLES DEBT WITH HCF INTERNATIONAL ADVISERS THROUGH EQUITY

Executive Summary

• Defense Metals Corp. settled $158,200 of outstanding advisory debt to HCF International Advisers by issuing 988,750 common shares at a deemed price of $0.16 per share.
• The company also granted HCF 494,375 common share purchase warrants (one‑half warrant per settlement share) exercisable at $0.21 per share for 36 months.
• Settlement Shares and Warrants are subject to a six‑month hold period and pending TSX Venture Exchange approval.

Key Details

• Debt Amount Settled: $158,200 of payables owed to HCF International Advisers.
• Equity Issuance: 988,750 common shares issued at a deemed price of $0.16 per share (total nominal value ≈ $158,200).
• Warrant Grant: 494,375 common share purchase warrants, each allowing purchase of one additional share at $0.21 for 36 months from issuance.
• Hold Period: Both Settlement Shares and Warrants subject to a six‑month lock‑up per the agreement.
• Approval Required: Transaction pending final approval by the TSX Venture Exchange.
• Strategic Context: CEO Mark Tory highlighted that the equity settlement reflects HCF’s confidence in the Wicheeda REE Project as Defense Metals moves into the feasibility stage.

Notable Quotes

“We are very pleased that HCF have agreed to accept equity in return for debt… It once again demonstrates a positive view of the Wicheeda Project from a knowledgeable and experienced industry participant as we enter the Feasibility Stage…” – Mark Tory, President & CEO, Defense Metals Corp.