Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
Defense Metals (TSXV: DEFN、OTCQB: DFMTF), a Canadian rare earth developer, has secured two key positives: a non-binding memorandum of understanding (MOU) with Hanwha Ocean and its affiliates, and inclusion in the newly launched Sprott Rare Earth Ex-China ETF. The dual developments bolster both its business prospects and market standing.
Signed on May 25, 2026, the MOU covers two core areas. The parties will evaluate a long-term offtake arrangement, under which rare earth materials from Defense Metals’ Wicheeda Project will supply Hanwha Ocean and its affiliates to support their production and supply chains. Hanwha also intends to pursue a strategic equity investment in Defense Metals, which is contingent on due diligence, further negotiations and final formal agreements.
As essential building blocks for next-generation defense and advanced manufacturing, rare earth elements are widely used in marine propulsion, high-end electronics, communication systems and defense equipment, carrying growing strategic value. The partnership comes as Canada modernizes its naval fleet, with Hanwha Ocean bidding for the country’s large-scale submarine program. Hanwha has expanded its presence in Canada’s critical minerals sector in recent years, with prior partnerships including the Automotive Parts Manufacturers’ Association and Algoma Steel. The latest tie-up further strengthens its local resource footprint.
Mark Tory, CEO of Defense Metals, said the MOU marks a key step in building Canada’s domestic critical minerals supply chain for defense and maritime industries. Collaboration with a leading global shipbuilder will create a more secure material supply network and drive Canada’s industrial growth. A Hanwha spokesperson noted that Canada’s naval upgrade raises demand for reliable critical mineral supplies. The new partnership will secure raw materials for Hanwha’s maritime and defense operations, while aligning with Canada’s naval modernization plans.
Defense Metals has also joined the Sprott Rare Earth Ex-China ETF, the world’s only ETF focused exclusively on non-China rare earth firms. The fund tracks global players engaged in rare earth mining, separation and refining, while excluding entities based or primarily operating in China. Tory stated the inclusion recognizes solid progress at the Wicheeda Project. It is expected to attract more institutional investors and lift trading liquidity, with the ETF set to become a key benchmark for critical minerals investors.
Defense Metals focuses on rare earth development, with its wholly owned Wicheeda Project located near Prince George, British Columbia. Ranked among the most advanced undeveloped rare earth deposits in North America and Europe, the project completed a Pre-Feasibility Study in 2025 that confirmed its economic viability. The company is now advancing a full feasibility study and permitting work to move the project toward production, aiming to become a trusted rare earth supplier for defense, high-tech and clean energy sectors. The Pre-Feasibility Study relies on multiple operational assumptions, so projected reserves and economic returns remain uncertain. Additional studies and regulatory approvals are required before a production decision is made.
Market observers caution that the non-binding MOU offers no guarantee of finalized supply deals or equity investment. The Wicheeda Project is still years away from commercial production, with its development timeline and financial performance yet to be determined. Investors are advised to assess updates prudently.
