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TICKERS: DEFN; DFMTF; 35D

Rare Earths Company Signs MOU to Investigate Building On-Site Pilot Plant

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The contents of this memo between Defense Metals and a Chinese minerals processing expert are described in a Highballer Stocks report, which notes "demand from every corner of the tech arena."

In an Aug. 11 research note, Greg Nolan of Highballer Stocks reported that Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) signed a "landmark" memo of understanding (MOU) with the Sinosteel Corp. subsidiary, Sinosteel Equipment & Engineering, "a big name in the mineral (processing) arena."

Pursuant to the MOU, as described in Defense Metals' news release, the two companies will look into building a large-scale, on-site pilot plant at Defense Metals' Wicheeda property that would be used to determine whether full-scale mine development would be technically feasible and economically viable.

"I believe Sinosteel's involvement adds heaps of validity to the Wicheeda project," wrote Nolan.

To achieve this goal, Defense Metals will give Sinosteel information about its Wicheeda rare earths project. Sinosteel will provide Defense Metals information about the rare earths industry, on topics to include beneficiation, engineering procurement construction (EPC), EPC  financing, pricing, costs, and the like.

As for the proposed pilot plant, it would be equipped to perform beneficiation and hydrometallurgical processes to produce bulk samples of rare earth concentrate, mixed rare earth carbonate, and high-purity rare earth oxides. Sinosteel, as the general contractor, is responsible for the plant design, equipment procurement, construction, installation, commissioning, training, and other related necessary work.

"Sinosteel has a long commercial history and has completed more than 400 major metallurgical projects for the Chinese government and built many of the largest international projects ever undertaken by People's Republic of China," Brendan Jephcott, director of Golden Dragon Capital Ltd. and advisor to Defense Metals, said in Defense Metals' release.

Nolan pointed out that Sinosteel built Northern Minerals' heavy rare earth pilot plant project in Australia, which is "more like a mid-sized facility," with a capacity of 60,000 tonnes per year of raw ore.

Finally, according to the MOU, both companies agree to discuss Sinosteel possibly financing or sourcing financing for development the pilot plant.    

"If everything plays out by the numbers — if a positive preliminary economic assessment (due to drop in Q4/21) leads to a positive prefeasibility study (H2/22) — this connection will open the door to project financing," Nolan wrote.

In the meantime, Nolan noted, Defense Metals is continuing to drill at Wicheeda and is scheduled to release an updated resource estimate in Q1/22.

Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Defense Metals Corp. Click here for important disclosures about sponsor fees. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Defense Metals Corp. Please click here for more information.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp., a company mentioned in this article.




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