Defense Metals Corp. (“Defense Metals” or the “Company”) (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce that it has completed the acquisition of Spectrum Mining Corporation (“Spectrum”), the holder of a one hundred percent (100%) interest in the Wicheeda Rare Earth Element (REE) Property.
Pursuant to the option agreement between the Company and Spectrum dated November 22, 2018 (the “Option Agreement”), Defense Metals fulfilled all required cash payments, share issuances and exploration expenditure requirements necessary to exercise the option to acquire all of the issued and outstanding common shares of Spectrum. Upon delivery of the notice to Spectrum of exercise of the option, Defense Metals completed the final acquisition payments under the Option Agreement as follows:
- issued to the shareholders of Spectrum (the “Vendors”) on a pro rata basis, such number of common shares of the Company equal to 49% of the issued and outstanding common shares on a post-issuance basis, and
- paid to the Vendors on a pro rata basis, a cash payment in the aggregate of $100,000.
The final payments under the Option Agreement to acquire Spectrum totalled 78,115,549 common shares of Defense Metals at a deemed price of $0.225 per share and the payment of $100,000 in cash, for final payment consideration of $17,675,999.
Pursuant to a finder’s fee agreement with Mulgravian Ventures Corporation (“MVC”) entered into in connection with the Option Agreement, the Company issued 1,171,733 common shares of the Company to MVC, equal to 1.5% of the number of common shares issued to the Vendors upon the closing of the acquisition of Spectrum. The common shares issued to MVC are subject to a four month hold period in accordance with Canadian securities laws and the policies of the TSX Venture Exchange.
Craig Taylor, CEO of Defense Metals commented:
“Since entering the option to acquire the exploration stage Wicheeda REE Project in late 2018 Defense Metals has advanced the project through metallurgical flowsheet development, and initial and updated mineral resource estimates. This work has culminated in our recent positive PEA for Wicheeda yielding a pre-tax net present value (NPV@8%) of CAD$760 million. Defense Metals now owns and controls 100% of the Wicheeda REE Project. With this acquisition, and our PEA, we look forward to continuing to advance this exceptional North American REE asset.”
