McLeod Lake band takes stake in Defense Metals’ rare earth project in British Columbia

Defense Metals (TSXV: DEFN; OTCQB: DRMTF) has entered into a co-design agreement with the McLeod Lake Indian Band regarding development of Defense’s 100%-owned Wicheeda rare earth element (REE) project. The project is about 80 km northeast of Prince George, B.C. With a targeted annual production equivalent to almost 10% of current global REE production, the project has the potential to become a significant supplier of rare earth elements.

The agreement calls for Defense and the band to collaborate on the design of the Wicheeda project to assure the band’s interests and priorities are addressed in the planning and design of future feasibility studies and environmental assessments. Budgets and work plans will be developed co-operatively and incorporated into the process.

Defense Metals will also make an upfront payment to the McLeod Lake band to fund certain costs the band will incur in participating in review activities and support band members who seek post-secondary training in a mining-related field.

The McLeod Lake band has also agreed to participate in a non-brokered private placement by purchasing approximately 2.6 million common shares of Defense for C$0.26 per share for a total of C$665,026.

The Wicheeda deposit contains measured and indicated resources of 342 million tonnes grading 2.02% total rare earth oxides (TREO) and containing 699,000 tonnes of oxides. The inferred resource is 11.1 million tonnes at 1.02% TREO, containing 113,000 tonnes of oxides. A feasibility study is to begin later this year.