Funding
Defense Metals Closes First Tranche of Private Placement for C$3.65 Million
By News Desk ·
Key takeaways
- Defense Metals issued 38,994,395 units at C$0.14 each in the first tranche, raising approximately C$3,647,877.
- Each unit includes one common share and one-half of one warrant exercisable at C$0.21 for 36 months.
- Insiders participated for approximately C$540,011, and the company paid C$99,484 in cash commissions to finders.
Defense Metals Corp. closed the first tranche of its non-brokered private placement, issuing 38,994,395 units at C$0.14 each for aggregate gross proceeds of approximately C$3,647,877. The company said it anticipates closing a second and final tranche in the coming week.
Defense Metals' First Tranche Details
The first tranche comprised 28,927,143 units issued under the listed issuer financing exemption and 10,067,252 units issued under other prospectus exemptions, Newswire reported. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at C$0.21 for 36 months following the closing date.
Defense Metals said it intends to use net proceeds to advance its 100%-owned Wicheeda Rare Earth Element Project in British Columbia, including support for work toward its full feasibility study, and for general working capital and corporate purposes. The company paid cash commissions of C$99,484 to certain eligible finders and issued 710,599 non-transferable finder's warrants, each exercisable at C$0.14 for 24 months.
Insiders of the company participated in the offering for approximately C$540,011, a related party transaction under Multilateral Instrument 61-101. Units issued under the non-LIFE offering carry a statutory hold period of four months and a day, and certain LIFE units carry a four-month hold period under TSX Venture Exchange policies, both expiring February 17, 2027. The offering remains subject to final approval of the TSXV.
Defense Metals' Funding and Project Records
According to akta.pro company records, Defense Metals has 16 funding rounds on record and total funding of $49.6 million. The company's Wicheeda project holds a proven and probable mineral reserve of 25.5 million tonnes at 2.43% total rare earth oxides with a 15-year mine life producing 31,900 tonnes per year of rare earth concentrate.
| Funding round | Date | Amount |
|---|---|---|
| Post IPO equity | 2026-09 | $4.3 million |
| Grant led by Natural Resources Canada | 2026-03 | $1.4 million |
| Post IPO equity | 2025-10 | $11.5 million |
| Post IPO equity led by Hatch | 2025-07 | $616,345 |
Defense Metals' Earlier Financing and Drilling
Defense Metals announced a non-brokered private placement for up to $6 million on September 24, 2026, issuing up to 42.86 million units at $0.14 each, with an expected lead order of $500,000 from its executive chairman, Newswire reported. The company said proceeds would fund the Wicheeda project's feasibility study.
On August 31, 2026, Defense Metals reported resource-conversion drilling at Wicheeda with intervals grading up to 6% total rare earth oxides, Northernminer reported. Stock Titan reported the same date that the company announced assay results for 11 core drill holes totaling 1,633 meters at the project.
Defense Metals' Second Tranche Timing
Defense Metals said it anticipates closing a second and final tranche of the offering in the coming week. The offering is subject to the final approval of the TSX Venture Exchange.