Defense Metals signs MOU for Rare Earths supply chain

Defense Metals Corp. [TSXV: DEFN; OTCQB: DFMTF] signed a memorandum of understanding (MOU) with The Saskatchewan Research Council (SRC) that will benefit both parties by promoting a collaborative and strategic approach to help strengthen the rare-earth element (REE) supply chain within Canada.

Guy de Selliers, executive chairman, commented: “We are excited to collaborate with The Saskatchewan Research Council, a recognized leader in rare-earth processing and technology development. This MOU represents a significant step forward in our goal of becoming part of a secure and sustainable supply chain for rare-earth elements in North America. By working together with SRC, we believe we can make substantial progress toward closing the rare-earth supply chain loop and ensuring the availability of these critical materials for green energy and defense applications that are essential for national security.”

The MOU outlines a framework for Defense Metals and SRC to leverage their respective capabilities and interests in the supply and processing of rare-earth materials that are especially critical to the production of rare-earth magnets.

The proposed objectives of this collaboration include exploring potential collaborations using each participant’s respective capabilities and interests in the process and supply of rare earth products used in the rare-earths magnet value chain, enabling discussions in connection with the separation of the Defense Metal’s mixed rare-earth carbonates into separated rare-earth oxides employing SRC’s separation technology design, installation and operational expertise and facilitating negotiations of a long-term agreement with SRC for the sale and purchase of Defense Metal’s mixed rare-earth carbonate.

This collaboration aligns with the broader Canadian critical minerals strategy, which is focused on developing a domestic industry, reducing reliance on foreign sources of critical minerals and bolstering national security. Furthermore, it supports broader North American goals for economic competitiveness and technological innovation in clean energy and defense technologies.

Defense Metals is focused on the development of its 100%-owned Wicheeda REE deposit, for which a mineral resource estimate was reported in 2023 in a technical report prepared in accordance with NI 43-101 standards.

The 8,301-hectare (approximately 20,534-acre) Wicheeda project, located approximately 80 km (approximately 50 miles) northeast of the city of Prince George on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada, is readily accessible by a paved highway and all-weather gravel roads.

Nearby, superior infrastructure includes hydro power transmission lines, gas pipelines, the Canadian National Railway and major highways that allow easy access to the port facilities at Prince Rupert, the closest major North American port to Asia.