Defense Metals Corp V.DEFN

Alternate Symbol(s): DFMTF

Metals & Mining Industrial Metals & Minerals

Defense Metals Corp. is a Canada-based mineral exploration and development company. The Company is focused on the development of its 100% owned Wicheeda Project, which is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada. The Wicheeda Project consists of 12 mineral claims covering an area of approximately 8,301 hectares (20,534 acres) located 80 kilometers northeast of the city of Prince George, British Columbia, Canada. Its rare-earth elements project delivers critical metals commonly used in the defense and national security industries, and in the production of green energy technologies.

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Defense Metals Corp > Defense Metals Acquires 100% of the Wicheeda REE Project

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Comment by Maxmoeon Jan 17, 2022 9:35pm

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Post# 34326839

RE:RE:RE:RE:RE:Defense Metals Acquires 100% of the Wicheeda REE Project

Ding,ding,ding! I find the deal stunning, and yes, maybe even contemptuous. They could have just gone public for a half million in legal and filing fees. Was it a happy coincidence, or "the plan" to sit back for 3 years while others put in capital and have all the newly purchased shareholdings matched with free shares to spectrum? What a crock.

ElJ wrote: Maxmoe,
I detect some sarcasm in your response... the use of irony to mock or convey contempt.

I offer a different perspective for consideration:
When ownership is "wished for" or even desired by a second party(Defence Metals), and corporate wealth is not readily available to purchase an asset such as Wicheeda of uncertain value, a deal with the then existing owners to transfer their ownership under certain conditions can be, and in this case was, agreed. I suggest that insight into the current financial structure may be better understood if one considers the situation from the point of view of the previous owners.

Defense Metals has serious need for Cash to leverage their mineral exploration and chemical processing expertise.

Their recent ownership transaction provides the opportunity and responsibility to manage future development at Wicheeda. Dilution per share occurs only when the asset received is of lower “value” than the price paid, in other words issued increase in shares outstanding can be immediate dilution to (example) EPS but not necessarily dilution to other critical company valuation metrics.
The previous owners of Wicheeda have started to monetise their original resource by added to their Cash position and sharing ownership; adding exploration and mineral expertise; and passing management control to Defense Metals.

I look forward to Defense Metals development of Wicheeda in a similar manner and do not anticipate that their required funding will be facilitated through Debt alone…. significant equity participating is my expectation under current circumstances,

Peace,
Good Decision-making to All,
ElJ