#Canada #Vancouver #Defense Metals #Wicheeda Project #Hatch Ltd

Defense Metals Settles Debt with Hatch Through Equity

Introduction
In a significant move, Defense Metals Corp. has announced a strategic debt settlement agreement with Hatch Ltd., aimed at resolving outstanding payables stemming from engineering services rendered to the company. Under the terms of this agreement, valued at $846,547.31, Defense Metals will issue approximately 5.29 million common shares at a price of $0.16 each. This not only alleviates their monetary obligations but also reaffirms their collaborative spirit with a respected industry partner.

Details of the Settlement Agreement
The innovative share-for-debt transaction will prompt the issuance of 5,290,920 shares to Hatch, along with an ancillary issuance of 2,645,460 common share purchase warrants. Each warrant allows Hatch to purchase an additional common share at a price of $0.21 for a period of 36 months following the issuance date. This initiative has been in hot discussion, particularly given recent share price trends, ensuring compliance with regulations that impose a maximum allowable discount of 25%. As a result, the terms reflect a calculated approach to market conditions while facilitating cooperation between both parties.

The decision to enter into this equity arrangement illustrates the confidence Hatch has in the Wicheeda Rare Earth Element Project, which is critical for the future growth of Defense Metals. Mark Tory, the Company’s President and CEO, expressed optimism about this partnership, emphasizing that it fortifies their working relationship and attests to Hatch’s favorable outlook on their endeavors.

Future Engagements with Hatch
Further cementing this partnership, a side letter agreement has been established, indicating that Defense Metals intends to retain Hatch for engineering services required in the comprehensive feasibility study for the Wicheeda Project. This shows a dedication to collaborating with top-tier engineering firms to drive project development, signaling the company's commitment to ensuring the success of their operations in Canada.

Overview of the Wicheeda Project
The Wicheeda Project, located approximately 80 kilometers northeast of Prince George, British Columbia, spans 11,800 hectares and is strategically situated in proximity to necessary infrastructure, including hydro power transmission lines, pipelines, and a major railway. The property holds significant potential for the mining of rare earth elements, which are crucial for various modern technologies. A recent Preliminary Feasibility Study has illustrated robust economic prospects, making it an appealing undertaking for investors and stakeholders alike.

Conclusion
As market dynamics continue to evolve, Defense Metals Corp. is positioning itself firmly within the developmental framework of the Wicheeda Project. By settling its debt through an equity issuance, the company enhances its financial stability and strengthens its partnership with Hatch Ltd. This collaborative approach points to a future filled with promising possibilities in the rare earth element market, aligning with the global shift towards sustainable and innovative technology solutions. As Defense Metals moves forward, it remains committed to its goals of responsible development and creating value for its stakeholders.

For further information on this development and more about Defense Metals, visit their official website or contact their corporate office for detailed inquiries.