Defense Metals Corp. (TSXV:DEFN) (OTCQB:DFMTF) Company Profile
Founded in 2016, Defense Metals Corp. (TSXV:DEFN) (OTCQB:DFMTF) is an advanced mineral exploration company. It is focused on the acquisition of mineral deposits containing rare earth elements (REEs) commonly used in the electric power market, military, national security, and the production of green energy technologies.
The company’s primary focus is to exercise its option to acquire 100% of the Wicheeda Rare Earth Element Project. This project consists of six mineral claims totaling 1,708 hectares (4,220 acres) and is located approximately 80 km northeast of the city of Prince George, BC, a strategic mining center.
The Wicheeda property is strategically positioned alongside a major forestry service road connected to Highway 97. There are also hydroelectric power lines, a gas pipeline, and a Canadian National railway line in the nearby area.
In late 2018, Defense Metals collected a 30-tonne bulk sample from Wicheeda and sent it to SGS Canada Inc. for metallurgical and processing test work.
In October, SGS flotation test work returned 48.7% concentrates of high-grade LREO (light rare earth oxide) such as cerium, lanthanum, neodymium, and praseodymium oxides. Initial indications from SGS found that these rare earths can be extracted through acid leaching and caustic conversion techniques.
In February 2020, Defense Metals received final bench-scale hydrometallurgical test programs from SGS that achieved approximately 90% REE extraction from Wicheeda flotation concentrate.
Through mild hydrochloric acid leaching, the test program removed the gangue minerals (those minerals that are economically unimportant) so that the rare earths could be extracted. Simple treatment of the leach solution with limestone removed 94–100% of impurities, with REE losses of approximately 2–4%. The test even identified opportunities to further improve overall REE extraction.
These results are considered “exceptional” and show that the Wicheeda deposit is readily amenable to processing via well-established extraction methods.
Defense Metals already exceeded its Year 1 and Year 2 exploration spend commitments within 12 months of its option of the Wicheeda REE Project. This demonstrates its clear commitment to the rapid advancement of this promising project.
The World’s Growing Reliance on Rare Earth Elements
From smartphones to satellites, nearly every electric device of the modern age requires at least one kind of rare earth element. This is especially true for green technologies like electric vehicles and wind turbines, as well as key military items such as helmet-mounted radios and laser-guided missiles.
REEs are so important to the American military, in fact, that on July 22, 2019, US President Donald Trump stated:
“By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 303 of the Defense Production Act of 1950, as amended (the “Act”) (50 U.S.C. 4533), I hereby determine, pursuant to section 303(a)(5) of the Act, that the domestic production capability for Rare Earth Metals and Alloys is essential to the national defense.”
Trump’s determination is an attempt to break America’s reliance on China for REEs. Despite having only 30% of global reserves of rare earths, China is responsible for approximately 90% of the world’s REE supply. Between 2004 and 2017, it accounted for 80% of US rare earth imports.
As it moves away from China, the US is turning towards its northern neighbor for rare earths. This means that Canadian REE companies like Defense Metals Corp. (TSXV:DEFN) (OTCQB:DFMTF) are faced with the opportunity to supply the American military with a resource it desperately needs.
Last year, in conversation with Trump, Prime Minister Justin Trudeau emphasized that Canada can offer “a reliable supply” of rare earth metals. Then, on January 9, 2020, Canada and the US finalized a joint action plan to secure a domestic supply chain of rare earth metals. This action plan will:
“…guide cooperation in areas such as industry engagement; efforts to secure critical minerals supply chains for strategic industries and defence … [and] promote joint initiatives, including research and development cooperation, supply chain modelling and increased support for the industry.”
This plan comes as demand for REEs is already booming. According to Christiane Villemure, Director General of the Canadian Rare Earth Elements Network, “Over the last 10 to 15 years, the world consumption of REEs has increased at 8% to 12% per annum, a trend that experts agree will continue, and may increase.”
In 2018, the global market for rare earths was estimated at US$8.10 billion. By 2025, that market will likely be worth around US$14.43 billion.
Considering how well-positioned Defense Metals is thanks to the Wicheeda Property, the value here is extraordinarily evident.
Meet the Defense Metals Corp. (TSXV:DEFN) (OTCQB:DFMTF) Team
Craig Taylor – CEO & President
Since 1994, Mr. Taylor has been President and CEO of Vanville Projects Ltd. From February 2006 until July 2010, Mr. Taylor was the CEO, CFO, President, and a director of Angus Resources Inc., which in 2010 completed its qualifying transaction and was renamed Batero Gold Corp. He has also previously served as a director of Saber Capital Corp, Advantage Lithium Corp. and Clear Mountain Resources Corp. (now named Patriot One Technologies Inc.). Mr. Taylor has also served as director and officer of several other public companies engaged in mineral exploration and development.
Ryan Cheung – CFO & Director
Ryan Cheung has been providing accounting, management, securities regulatory compliance services to private and public-listed companies for years. Mr. Cheung also serves as an officer and/or director of a number of other public-listed companies. Mr. Cheung holds a Bachelor of Commerce degree from the University of Victoria and is a member of the Chartered Professional Accountants of British Columbia.
Andrew Burgess – Director
Mr. Andrew Burgess is a Chartered Accountant and a Certified Public Accountant. In addition to being the CFO of Spectrum Mining Corporation, he is an experienced professional with more than 35 years of accounting, finance, and financial reporting experience with listed companies.
Kristopher J Raffle – P.Geo & Director
Kristopher J. Raffle, B.Sc., P.Geo. serves as the Qualified Person for the Company. Mr. Raffle is also a current director of First Legacy Mining Corp. and is a partner and principal geologist with Edmonton-based geologic consulting firm APEX Geoscience Ltd. He has over 18 years of North American-focused base and precious metals exploration experience.
Maximilian Sali – Director
Mr. Sali has been in the capital markets for 10 years managing private family assets. He is the president of Baccarat Investments Inc., a private company providing consulting and management services to public companies along with investing.