Defense Metals Corp. is a mineral exploration and development company focused on the development of its 100% owned Wicheeda Rare Earth Element Deposit located near Prince George, British Columbia, Canada.
Wicheeda is a 100% owned, BC-based, high quality, open-pit rare earth asset at the pre-feasibility study stage (due in Q2), accessible by road, nearby rail, power, gas, and a major deep sea port. The company has $7m in the bank as of September, and as of August of this year had a resource estimate showing 27.8 million tonnes indicated, 11.1 million inferred.
Today, Defense Metals announced it has entered into a Co-Design Agreement with the McLeod Lake Indian Band (MLIB) regarding ongoing project development of Defense Metals’ 100% owned Wicheeda Rare Earth Element Project.
Pursuant to the Agreement, Defense Metals will collaborate on the design of the Wicheeda Project with MLIB. Collaboration will incorporate MLIB’s interests and priorities in the planning and design of future feasibility studies and the environmental assessment process and include MLIB involvement in certain technical studies related to the Wicheeda Project. Defense Metals will make an upfront payment to MLIB, fund certain of MLIB’s costs of participating in review activities and support MLIB Members in attending post-secondary training in a mining-related field.
Defense Metals Corp. also announces that MLIB has agreed to make a strategic investment into Defense Metals by way of a non-brokered private placement financing of 2,557,795 common shares of the Company at a price of $0.26 per share, for aggregate proceeds of $665,026.70. The Company intends to use the net proceeds of the Offering towards advancing the Wicheeda Project.
For a breakdown of the fundamentals and the Defense Metals story, check out Chris Parry’s recent article on the Company.
The stock is currently flat at time of writing on today’s news.
Recently, the stock confirmed a very strong breakout. A wedge/channel was broken which ended the current downtrend. The stock is set to go from lower highs and lower lows, to making higher highs and higher lows. The first higher low could be forming around the $0.20 zone.
The stock did pullback to retest the large gap zone and was very close to the trendline it broke. As long as the stock remains above $0.18, the new uptrend is in play. Watch for a break above $0.28 to confirm the first higher low in a new uptrend.
