VANCOUVER, BC, Aug. 10, 2021 /CNW/ - Defense Metals Corp.
("Defense Metals" or the "Company") (TSXV:
DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce
the execution of a non-binding Memorandum of Understanding
("MOU") with Sinosteel Equipment & Engineering Co., Ltd
("Sinosteel MECC"), a subsidiary of Sinosteel Corporation,
consisting of information sharing, beneficiation testwork and
potential concentrator design research cooperation, and an
investigation into the establishment of an on-site large-scale
pilot plant at the Wicheeda Rare Earth Property ("Wicheeda")
to assess the economic and technical feasibility of full-scale mine
development.
Pursuant to the MOU, areas of cooperation between the Parties
are as follows:
- Defense Metals will share Wicheeda project information with
Sinosteel MECC including but not limited to:
- Mine development,
- Permitting and licences,
- Transport logistics,
- Project financing,
- Cash cost analysis, and
- Situational updates.
Sinosteel MECC will share with DEFN its experience in the rare
earths industry relating to beneficiation, Engineering Procurement
Construction ("EPC") and EPC financing, and other general
knowledge including pricing, costs, and other relevant matters in
the rare earth elements industry.
- Defense Metals will provide Sinosteel MECC with a
representative mineralization sample to carry out beneficiation
testwork with the objective of compiling research to design a
concentrator suitable for handling Wicheeda feed material. The
testwork results will be used in conjunction with the ongoing
Preliminary Economic Assessment to optimise design for the future
project.
- Wicheeda rare earth sample will total approximately 200kg and
will be sent to Sinosteel MECC as soon as practicable and subject
to obtaining any necessary government permits and approvals.
- It is anticipated the testwork will take approximately 4.5
months and cost US$200,000.
- After receiving the testwork results, both parties will assess
and discuss how to design a concentrator suitable for Wicheeda feed
material.
- The proposed pilot plant will consist of both a beneficiation
and hydrometallurgical process to produce bulk samples of rare
earth concentrate, mixed rare earth carbonate, and high-purity rare
earth oxides.
- DEFN will assess the cost value assigned to the EPC contract
and will inform Sinosteel MECC as the proposed pilot plant
progresses.
- DEFN will review if additional related infrastructure will be
required for the pilot plant can be included in the EPC contract
for Sinosteel MECC.
- Sinosteel MECC, as the general contractor, will be responsible
for the design, procurement of equipment, construction,
installation, commissioning, training and other works of the pilot
plant following general EPC terms.
- It is envisioned the pilot plant will be fully constructed in
modules in China before being
transported and installed at Wicheeda.
- Both parties agree to enter into discussions regarding
Sinosteel MECC providing or sourcing EPC financing solutions for
development the pilot plant such as:
- Flexible financing solutions supported by Sinosteel MECC but
based on conditions to the satisfactory of Sinosteel MECC, and
- Assisting DEFN to find proper investors from China or other countries.
Craig Taylor, CEO of Defense
Metals, stated: "Defense Metals is pleased to announce a
landmark MOU with Sinosteel MECC a major player in the global
mining industry and looks forward to updating shareholders with
further information as project development talks continue between
the two companies."
Brendan Jephcott, Director of
Golden Dragon Capital Ltd. and advisory to Defense Metals stated:
"Sinosteel MECC has a long commercial history and has completed
more than 400 major metallurgical projects for the Chinese
government and built many of the largest international projects
ever undertaken by People's Republic of
China."
About the Wicheeda REE Property
The 1,708 hectare Wicheeda REE Property, located approximately
80 km northeast of the city of Prince
George, British Columbia, 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.
Defense Metals is currently advancing the road accessible
Wicheeda Critical Rare Earth Element (REE) Property, which is
located close to infrastructure approximately 80 kilometres
northeast of Prince George, British
Columbia (BC). The Wicheeda project has indicated mineral
resources of 4,890,000 tonnes averaging 3.02% LREO (Light Rare
Earth Elements) and inferred mineral resources of 12,100,000
tonnes averaging 2.90% LREO1.
Qualified Person
The scientific and technical information contained in this news
release as it relates to the Wicheeda REE Property has been
reviewed and approved by Kristopher J. Raffle, P.Geo. (BC)
Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and
a "Qualified Person" as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects. Mr.
Raffle verified the data disclosed which includes a review of the
analytical and test data underlying the information and opinions
contained therein.
About Defense Metals Corp.
Defense Metals Corp. 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. Defense Metals has
an option to acquire 100% of the 1,708 hectare Wicheeda Rare Earth
Element Property located near Prince
George, British Columbia, Canada. Defense Metals Corp.
trades in Canada under the symbol
"DEFN" on the TSX Venture Exchange, in the United States, under "DFMTF" on the OTCQB
and in Germany on the Frankfurt
Exchange under "35D".
About Sinosteel Corporation
Sinosteel Corporation is a central enterprise under the
administration of the State-Owned Assets Supervision and
Administration Commission ("SASAC") and is engaged in the
development and processing of metallurgical mineral resources,
trading and logistics of metallurgical raw materials and products,
and related engineering technical service and equipment
manufacturing. It is a large multi-national enterprise with
clearly-defined businesses that integrate resources development,
trade & logistics, engineering projects, science &
technology, equipment manufacturing to provide comprehensive
services for the steel industry and other strategic emerging
industries.
About Sinosteel MECC
Sinosteel MECC is a subsidiary of Sinosteel Corporation and its
business covers product trading and mining project construction.
Sinosteel MECC has previously cooperated with Australian rare
earths company Northern Minerals Ltd. where it was granted the EPC
contract for the engineering, procurement, and construction of a
60,000tpa pilot plant for the Browns Range Rare Earth Project
located in Western Australia.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward–looking information or
statements" within the meaning of applicable securities laws,
which may include, without limitation, statements relating to the
MOU and the expected outcomes and developments that may arise,
plans for the Wicheeda Property, completion of test-work by
Sinosteel MECC, shipment of samples to Sinosteel MECC,
completion of PEA, the advancement and development of the
Wicheeda Property, the technical, financial and business prospects
of the Company, its project and other matters. All statements in
this news release, other than statements of historical facts, that
address events or developments that the Company expects to occur,
are forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which the Company
will operate in the future, including the price of rare earth
elements, the ability to achieve its goals, that general business
and economic conditions will not change in a material adverse
manner, that governmental approvals will be obtained, that
financing will be available if and when needed and on reasonable
terms. Such forward-looking information reflects the Company's
views with respect to future events and is subject to risks,
uncertainties and assumptions, including those filed under the
Company's profile on SEDAR at www.sedar.com. While such estimates
and assumptions are considered reasonable by the management of the
Company, they are inherently subject to significant business,
economic, governmental, competitive and regulatory uncertainties
and risks. Factors that could cause actual results to differ
materially from those in forward looking statements include, but
are not limited to, continued availability of capital and financing
and general economic, market or business conditions, adverse
weather conditions, failure to maintain or obtain all necessary
government permits, approvals and authorizations, failure to
maintain community acceptance (including First Nations), decrease
in the price of rare earth elements, the impact of Covid-19 or
other viruses and diseases on the Company's ability to operate
increase in costs, failure to obtain equipment, litigation, and
failure of counterparties to perform their contractual obligations.
The Company does not undertake to update forward–looking statements
or forward–looking information, except as required by law.
_____________________________
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1 Technical Report on the Wicheeda
Property, British Columbia, effective June 27, 2020 and prepared by
APEX Geoscience Ltd. (Steven J. Nicholls, B.A. Sc., MAIG and
Kristopher J. Raffle, B.Sc., P.Geo.) is available under Defense
Metals Corp.'s profile on SEDAR (www.sedar.com).
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SOURCE Defense Metals Corp.