Aa aerial view of Wicheeda project area. Credit: Agentis Capital.
Defense Metals (TSXV: DEFN) said Export Development Canada could lend up to $250 million to help the company develop and build its main Wicheeda rare earth project in British Columbia. The stock jumped.
Canada’s export credit agency expressed its interest in participating as a mandated lead arranger for the financing package, Vancouver-based Defense Metals said Wednesday in a statement. EDC issued a letter of interest in response to a company request for potential financing support, Defense Metals said.
A preliminary feasibility study, released in February, put Wicheeda’s initial capital cost at $1.4 billion. It gave the project an after-tax net present value of $1 billion and an after-tax internal rate of return of 19%, based on a discount rate of 8%. Reserves support a 15-year life of mine with an average annual output of 31,900…
