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Source: Streetwise Reports of 26/03/2024
Defense Metals Corp. announced that it has appointed a major corporate finance advisory firm in London to review the strategic financing of its wholly-owned Wicheeda Rare Ground Element (REE) project in British Columbia. One analyst says the company could be just one major global manufacturer. of critical elements.
Defense Metals Corp. DFMTF announced that it has appointed a leading financial advisory firm in London to review the strategic financing of its wholly-owned Wicheeda Rare Earth Elements (REE) assignment in British Columbia.
HCF International Advisors Ltd. se specializes in offering monetary advice “primarily aimed at the metals and mining sector,” the company said in a statement.
The HCF review will allow Defence to take a good look at potential investment characteristics and strategic partnerships for the progression and advancement of the task beyond the final touch of its Preliminary Feasibility Study (PFS), scheduled for the second quarter of 2024.
The task “has the prospect of being a significant producer globally,” Noble Capital Markets analyst Mark Reichman noted in an updated March 20 research note.
“We, the Wicheeda Project, enjoy significant benefits, including: 1) location, 2) favorable mineralogy, metallurgy, and grade, 3) ability to produce an EER product as established through pilot plant operations, 4) long mine life, and 5) social license. and help from the McLeod Indian Band,” Reichman wrote. The mission is well positioned to meet North America’s growing demand for rare earths. “
China is guilty of two-thirds of existing REE mining production and more than 85% of REE’s subtle output, which corresponds to the transition to blank energy, a fact that Western governments would like to change.
Noble rated the company as super consistent with a target value of C$0. 70 percent, an increase of more than 200% from Monday morning’s withcentage value.
HCF has put its expertise at the service of foreign mining assignments, critical mining assignments in Canada and Africa, the Ministry of Defense stated. HCF applied to Arafura Rare Earths Ltd. la funding from its Nolans NdPr (neodymium-praseodymium) allocation in the Northern Territory of Australia.
Nolans will come with a mine, processing plant, and related infrastructure. A vital component of any final investment resolution on the project, Arafura said on its website, is finalizing commercially binding sales agreements for a giant portion of the site’s removals.
He hopes to take down Nolans soon enough to “take full credit for a projected NdPr oxide hole in the mid-2020s. “
“This is a strategic and vital global NdPr task that, once developed, will be a major supplier of these critical minerals in the high-performance NdFeB permanent magnet market,” the company said.
Defense Wicheeda also has prospects of becoming a global REE manufacturer, Reichman noted.
“The assignment has significant advantages, as it adds a location conducive to mining in North America, well-developed infrastructure and logistics, and a strong technical team,” Reichman wrote. “While China remains the world’s largest supplier of rare land, Wicheeda is well-positioned to play a leading role in REE’s supply chain in North America and the world. Once the project begins production, it is expected to produce approximately 25,000 tonnes of rare earth oxide per year, or about 10% of existing global production. . »
The company said it drilled 58 cored probes totaling more than 12,000 meters to define the Wicheeda deposit and provide metallurgical samples.
This led to a measured and indicated resource of 34. 2 million tonnes, averaging 2. 02% TREO, 17. 8 million tonnes of high-quality dolomite carbonatite averaging 2. 92% TREO, the company said. It also discovered 11. 1 million tonnes, an average of 1. 02% of inferred TRA. Resources.
This represents a 260% increase over Defense Metals’ initial mineral resource estimate for 2019 and a conversion (measured and indicated) of 101% from the previous 2021 mineral resource estimate.
It’s “quite unexpected that its inventory is rarely already higher than it is,” technical analyst Clive Maund wrote on Jan. 29. He rated the inventory as a quick and hefty purchase for all periods.
“This is not an overly speculative investment,” Maud wrote.
Chief defense officer Craig Taylor said the company would collaborate with HCF on a review of Wicheeda’s strategic funding.
“As a result of our PFS, as we navigate the dynamic landscape of the metals and mining sector, HCF’s expertise will be instrumental in comparing and pursuing optimal financing and strategic partnership opportunities in Europe,” said Taylor.
The REE market is expected to grow from $2. 6 billion in 2020 to $5. 5 billion in 2028, according to a report by Fortune Business Insights.
“Upcoming demand for consumer durable goods such as tablets, laptops, and smartphones (are a few) of the points driving intake of rare terrestrial elements,” the report says. “It is estimated that the demand for those parts in the future “economies will develop rapidly. “
REEs are also used to purify water, MRIs, fertilizers, weapons, clinical research, wind turbines, computers, and permanent magnet motors for vehicles.
About 5% of the company’s shares are held by insiders: director Andrew S. Burgess, who owns 1. 5%, and CEO Taylor, who owns 0. 97%, according to Reuters.
About 11% of the company is owned by institutional entities, RCF Opportunities Fund II LP, and 10%, the company said. The remaining 84% is for retail.
Defense Metals has a market cap of C$55. 6 million with 258. 62 million featured shares and 248. 44 million single shares. It trades in a 52-week range from C$0. 35 to C$0. 15.
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