Defense Metals Offers a 2 for 1 Deal
Bob Moriarty
Archives
Feb 4, 2019
A young company in Vancouver offers investors an interesting option in two important metals, LREE (Light Rare Earth Elements) and uranium. They recently changed the name of the company to reflect the attention to defense based metals.
The company has aggressively picked up an important LREE project called the Wicheeda Deposit located about fifty miles NE of Prince George in central BC. The rare earth spectrum creates two problems for investors, first is that the name is confusing. Rare earths are not rare. Second, they are confusing. Someone namedRick Mills did an excellent piece a few months agodiscussing the rare earths issues and the potential for a giant disruption in the market due to the actions of China.
Defense Metals acquired the Wicheeda propertyby taking over Spectrum Mining in November of 2018. The deal calls for Defense Metals to pay Spectrum some cash and 49% of the existing shares when they exercise the option.
The Wicheeda project was first trenched and sampled by Teck in 1985-1987 and later the subject of a scoping study. A non-43-101 historic resource based on a twelve-hole drill program shows a resource of 11.2 million tons of LREE at a grade of 1.95%. Defense Metals wants to build a test plant nearby to further concentrate the metals for sale as a bulk item. The scoping study estimated the value of the concentrate at $5 a kilo but that number would be higher today. AOTH has doneanother article focused on Wicheedathat all potential investors should read.
To cover the bases in the most important defense and energy metals, DEFN also picked up two uranium properties right in the heart of the richest uranium deposit in North America, the Athabasca Basin. One, they call the Geiger project has two sets of claims totaling 1,233 hectares. The second set of claims is called the Kiaproth properties, consisting of two mineral claims totaling 8,130 hectares. The claims are surrounded by major uranium mining companies and can be sold or developed independently.
Since Donald Trump took office as president, he deals with trading partners by tossing hand grenades into meetings as a way of showing his dominance. Love him or not, he has brought chaos into international relations both with trading partners and with potential adversaries.
China controls 90% of REE production and can cut off supplies to other countries any time they want. The west must have dependable and safe supplies of all of the REE for magnets and specialty steels. With a market cap of under $5 million Defense Metals seems perfectly positioned for advances in either REE as green energy moves forward or in energy with higher prices for U3O8. In the last year uranium was the top price gainer.
Defense Metals is an advertiser. I own shares bought in the open market. Their last placement was at $.25 so current investors can actually get shares cheaper than in the PP. I am biased. Go to thecompany’s presentationfor more information.
Defense Metals Corp
DEFN-V $.20 (Feb 01, 2019)
DFMTF - OTCQB 23.7 million shares
Defense Metalswebsite
###
Bob Moriarty
President: 321gold
Archives
321gold Ltd