Defense Metals Closes $1.09-Million In Financing

Further to its news release on May 29, 2019, Defense Metals Corp. has closed an oversubscribed non-brokered private placement of 3,763,333 units for gross proceeds of $564,500. As previously disclosed, each unit was priced at 15 cents and comprises one common share and one common share purchase warrant. Each warrant is exercisable to purchase one common share of the company at a price of 30 cents per share for a period of 12 months from the date of closing the private placement.

The company also announces that it has closed an oversubscribed non-brokered private placement of 2,662,500 flow-through common shares at a price of 20 cents per FT share for gross proceeds of $532,500.

The company paid cash finders’ fees of $30,030 and issued 168,699 non-transferable finder warrants to eligible finders on a portion of the private placements. The finder warrants otherwise have the same terms as the warrants.

One director of the company participated in the private placement and the FT private placement. Participation of an insider of the company in the private placements constitutes a related party transaction as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. Because the company’s shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101.

All securities issued pursuant to the private placements are subject to a four-month hold period from the closing date in accordance with applicable securities laws.

The proceeds from these private placements will be used for exploration on the company’s Wicheeda rare earth element project located in Prince George, B.C., and for general working capital purposes.

About the Wicheeda property

The Wicheeda 1,780-hectare property is located approximately 80 kilometres northeast of the city of Prince George, B.C., is readily accessible by all-weather gravel roads and is nearby to infrastructure, including power transmission lines, the CN railway and major highways. Geologically, the property is situated in the Foreland belt and within the Rocky Mountain trench, a major continental geologic feature. The Foreland belt contains part of a large alkaline igneous province, stretching from the Canadian Cordillera to the southwestern United States, which includes several carbonatite and alkaline intrusive complexes hosting the Aley (niobium), Rock Canyon (REE) and Wicheeda (REE) deposits. The Wicheeda property is underlain by Kechika Group metasedimentary rocks that are intruded by the southeast-trending Wicheeda carbonatite; a deformed plug or sill approximately 250 metres in diameter that hosts significant REE mineralization. This intrusion comprises a ferroan dolomite carbonatite core, which passes gradationally outward into calcite carbonatite.

About the company

Defense Metals is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of green energy technologies, such as high-strength alloys and rare earth magnets. The company is (i) working on and has an option to acquire 100 per cent of the 1,780-hectare Wicheeda rare earth element project located in Prince George, B.C., Canada; (ii) owns a 100-per-cent interest in prospective uranium claims in the northeastern section of the prolific Athabasca basin, Saskatchewan; and (iii) has an option to acquire 100 per cent of the Lac Burge gold property located northeast of Val d’Or, Que.

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