Defense Metals conditionally approved for Canadian infrastructure funding

Defense Metals (TSXV: DEFN) says it has received conditional approval for C$1.88 million ($1.38 million) in Canadian government funding to support the infrastructure development of its flagship rare earths project in British Columbia.

The Vancouver-based company is currently advancing the Wicheeda project located 80 km northeast of Prince George. Considered one of North America’s top near-term rare earth projects, it hosts 25.5 million tonnes in reserves at an average oxide grade of 2.4%. A pre-feasibility study published last year outlined a 15-year rare earth mine that could produce 31,900 tonnes of concentrates annually.

Recently, the project was selected by the BC government for early coordination to fast-track its permitting process as it enters the feasibility stage and undergoes preparation for an environmental assessment.

The C$1.88 million funding, which would come from the federal Critical Minerals Infrastructure Fund, would allow Defense Metals to advance the development of a new 60-km transmission line designed to deliver up to 35MW of electricity from the BC Hydro grid directly to the proposed mine site.

Operational efficiency

Access to reliable, grid-based hydroelectric power represents a significant step toward reducing the project’s carbon footprint while strengthening long-term operational efficiency, the company said in a press release on Wednesday.

In addition to constructing the transmission line, the project also entails the engineering design of upgrades to the existing 43-km forest service road connecting Highway 97 to the mine site. These improvements are expected to enhance site accessibility, safety and logistical efficiency during both construction and future operations, Defense Metals added.

These infrastructure developments, which also include BC Hydro interconnection, rail network integration studies and Indigenous engagement initiatives, are scheduled to commence in this year and finish in 2028.

“This conditional funding approval represents an important milestone in advancing critical infrastructure planning for the Wicheeda REE project,” Defense Metals CEO Mark Tory said in the press release. “Securing access to clean, low-carbon hydroelectric power and optimizing transportation networks are key components in positioning Wicheeda as a strategically important domestic source of rare earth elements.”

“The Wicheeda rare earth project is a strong example of how strategic infrastructure like clean electricity, modern transportation corridors and stronger regional connections unlocks the full potential of the minerals beneath our feet,” Tim Hodgson, Canada’s Minister of Energy and Natural Resources, added.

Shares of Defense Metals dipped by 1.8% by midday Wednesday, for a market capitalization of C$107 million ($78 million).