Defense Metals Corp. Secures Investment with Convertible Note

Defense Metals Corp. Engages RCF Opportunities Fund II L.P.

DENVER, in an upcoming transaction, RCF Opportunities Fund II L.P. has taken a significant step by entering into an investment agreement with Defense Metals Corp. This collaboration involves the issuance of a secured convertible note, aimed at bolstering the financial stability of the company amid evolving market conditions.

Details on the Convertible Note Issuance

The secured convertible note, valued at C$500,000, is part of a larger non-brokered bridge financing strategy. This move underscores Defense Metals Corp.'s commitment to enhancing its capital structure. By providing RCF with the Convertible Note, the company opens doors for further investment opportunities and strategic partnerships.

Conversion Terms and Conditions

Under the outlined terms, RCF maintains the option to convert the principal amount of the note into common shares of Defense Metals Corp. This conversion can occur right up to seven days preceding a mandatory conversion event. Investors will appreciate the competitive deemed conversion price of C$0.125 per common share, which provides a favorable entry point for potential shareholders.

Additionally, upon the activation of a mandatory conversion event, the convertible note principal will convert into common shares at a 15% discount, barring any conditions that may lead to a lower conversion price. These provisions highlight the commitment of both parties to favorable market practices and shareholder interests.

Interest Structure and Security Details

The note carries an interest rate of 10% per annum, which will be payable quarterly in common shares. This approach supports investor returns while aligning with the company's strategic funding objectives. Notably, the interest calculation will ensure compliance with the necessary regulations set forth by the TSX Venture Exchange, ensuring a fair market approach.

The Convertible Note also enjoys secured status against all personal property of Defense Metals Corp., including its mining claims related to the Wicheeda REE Project. This layer of security serves to reinforce investor confidence and showcases the company's asset-backed financing strategy.

Shareholder Implications and Ownership Stakes

Prior to this issuance, RCF held approximately 9.99% of Defense Metals Corp.'s outstanding common shares. Should the principal amount of the note be converted at the specified conversion price, RCF's stake would increase to approximately 11.36%. This increase signifies greater confidence and commitment from RCF towards the future trajectory of Defense Metals Corp.

RCF’s Strategic Investment Policy

RCF Opportunities Fund II L.P. has a clear investment policy focused on generating returns through targeted investments in promising companies. This recent acquisition aligns with their strategy of identifying potential growth markets and investing strategically for long-term benefits. It wouldn't be surprising if RCF were to explore additional investment opportunities within Defense Metals Corp. as the market evolves.

Company Headquarters and Contact Information

Defense Metals Corp. operates from its head office located at Suite 1020 – 800 West Pender Street, Vancouver, British Columbia. This strategic position allows the company to actively engage with both local and international stakeholders, enhancing its operational capabilities in the mining sector.

Interested parties seeking further details on the recent investment and convertible note issuance can reach out directly to RCF Opportunities Fund II L.P. at their Denver office, or contact Mason Hills via telephone for further inquiries.

Frequently Asked Questions

What is the purpose of the secured convertible note?

The note is part of a financing strategy to enhance Defense Metals Corp.'s financial stability and enable future growth opportunities.

What are the conversion conditions for the note?

RCF can convert the principal into common shares at a price of C$0.125, with a mandatory conversion discount of 15% based on market conditions.

What is the interest rate on the convertible note?

The note will bear a 10% interest rate per annum, payable quarterly in common shares.

How does the investment affect RCF's stake in the company?

With conversion, RCF's ownership could increase from 9.99% to approximately 11.36% of total outstanding shares.

Where is Defense Metals Corp. based?

The company is headquartered in Vancouver, British Columbia, facilitating its operations in the mining sector.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.