A non-binding memorandum of understanding covering all potential long-term rare earth supply requirements for subsidiaries of Hanwha Corporation
Defense Metals Company (“Defense Metals” or the “Company”; TSX-V:burial /OTCBC:Dubai Financial Market /FSE:35D) today announced that it has entered into a non-binding memorandum of understanding (“MOU”) with Hanwha Ocean Co. Ltd (“Hanwha”) and its subsidiary Hanwha Corporation, signed on May 25, 2026, to explore a strategic collaboration involving the future supply of rare earth elements (“REEs”) and potential investment opportunities.
Jung Jae-hyo – Vice President of Hanwha Corporation (left), Mark Torrey – President and CEO of Defense Metals (center), and Jeong Sung-kyun – Vice President of Hanwha Ocean Co., Ltd. (right)
Defense Metals is a company focused on the development of its wholly-owned Wicheeda Rare Earth Project (“Wicheeda Project”), located near Prince George, British Columbia, Canada. Hanwha is a global South Korean shipbuilder and marine contractor specializing in the design, construction, maintenance and marketing of all types of ships, offshore platforms, drilling rigs, floating oil production units and submarines.
Under the terms of the MOU, the parties intend to evaluate the framework for a potential long-term offtake agreement under which Defense Metals could supply certain rare earth materials produced from the Company’s Wicheeda Project to support the manufacturing and supply chain requirements of Hanwha and its subsidiaries. The parties will also explore the possibility of Hanwha or any of its affiliates making a strategic investment in Defense Metals, subject to further due diligence, negotiation and implementation of definitive agreements.
The expected collaboration reflects the growing demand for safe and reliable domestic sources of critical minerals used in advanced industrial applications, including defense and marine technologies.
“This MOU is an important step in developing the supply chain for critical made-in-Canada metals that support the strategically important defense and maritime industries,” said Mark Torrey, CEO of Defense Metals. “Rare earth elements are increasingly recognized as key materials for next-generation defense technologies and advanced manufacturing. We believe that collaborating with a distinguished global marine shipbuilder positions both organizations to contribute to a safer and more resilient domestic supply ecosystem while supporting Canada’s long-term industrial development.”
A Hanwha spokesperson said: “Hanwha is focused on ensuring flexible and reliable access to critical materials required for Canada’s evolving maritime defense and comprehensive maritime capabilities. As Canada continues to modernize its maritime defense fleet, establishing strategic relationships within Canada’s important minerals sector is important to us. This MOU provides a framework for evaluating a potential long-term partnership that can support supply chain security as we work closely with the Government of Canada on a path to modernize and upgrade parts of their maritime defense arsenal.”
The MoU establishes a framework for ongoing discussions between the two parties regarding commercial terms, technical evaluation, bid requirements and potential investment criteria. There can be no assurance that the parties will enter into a final agreement or complete any transaction contemplated in the Memorandum of Understanding.
Rare earth elements are important components in a range of high-performance applications, including marine propulsion systems, advanced electronics, communications systems, and other defense-related technologies.
About Hanwha Global Division
The Hanwha Corporation Global Division is a diversified business arm of Hanwha Corporation, with more than six decades of experience in industrial explosives and a broad portfolio including petrochemicals, mining services, advanced materials and trading. Leveraging its operational expertise and global business networks, the division supports industrial and resource-related companies as they expand into future growth areas such as ammonia, hydrogen and next-generation materials.
About Hanwha Ocean
Hanwha Ocean is a leading global shipbuilder with over four decades of experience delivering complex marine and commercial shipbuilding programmes. Supported by a large-scale integrated shipyard in Geoje, South Korea spanning 5 square kilometers and employing more than 31,000 employees, the company combines proven industrial capability and operational expertise to deliver modern in-service offshore platforms backed by a flexible lifetime support model. Since its founding in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide. The company has developed deep expertise in the design, construction and service support of submarines and surface combatants for the Korean Navy, and produces approximately 45 commercial and naval vessels annually.
About Defense Metals Corp. and the Wicheeda Rare Earth Element Project
Defense Metals Corp is an advanced rare earth element (“REE”) developer focused on supplying minerals of strategic importance to the Western world’s defence, high-tech, and clean energy supply chains. The Company’s underlying asset is the 100% owned Wicheeda REE deposit, located near Prince George, British Columbia, Canada.
The Wicheeda Project is one of the most advanced undeveloped renewable energy deposits in North America or Europe, boasting strong mineral resources and mining reserve, as detailed in the Company’s 2025 Pre-Feasibility Study (“PFS”; see Company News Release dated April 7y2025) Prepared in accordance with National Instrument 43-101 Disclosure Standards for Mineral Projects. The PFS demonstrates the economic potential of the deposit and supports future project development.
Defense Metals is committed to advancing the Wicheeda project through the feasibility phase, allowing the company to produce and ultimately, making it a reliable supplier of critical ground entities that are essential to modern defense systems, advanced manufacturing and energy efficient technologies.
The PFS for the Wicheeda Rare Earth Element Project is preliminary in nature and includes numerous assumptions regarding mineralogy, capital and operating costs, and market conditions.
The mineral reserves and economic results expected in the PFS plan are subject to significant uncertainties, and there is no certainty that the results of the PFS plan will be achieved. Additional studies, including a feasibility study and permits, are required before a production decision is made for the Wicheeda project.
For more information, please visit www.defensemetals.com Or call:
Ali Al Mahdawi
Senior Vice President of Corporate Development
Email: (email protected)
+1.416.962.3300
Mark Torrey
President and CEO
Email: (email protected)
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary statement regarding “forward-looking” information.
This press release contains “forward-looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, any statements (express or implied) relating to: the development of the Wicheeda Project and the proposed debt settlement. Forward-looking statements are typically identified by words such as “plan”, “believe”, “expect”, “anticipate”, “intend”, “look forward”, “estimate”, “predict”, “project”, “continue”, “could”, “may”, “may”, “possible”, “potential”, “predict”, “should”, “will” and other similar words and expressions, but the absence of such words does not mean that a statement is not forward-looking. All statements in this press release, other than statements of historical fact, that address events, contributions or developments that the Company expects to occur are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those expressed in the forward-looking statements. These statements and information are based on numerous assumptions regarding current and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, expected costs and expenses, the ability to achieve its objectives, that general business and economic conditions will not change in a material adverse manner, and that financing will be available when needed and on reasonable terms. This forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including risks and uncertainties related to the interpretation of exploration and mineral results, risks related to the uncertainty inherent in exploration, development and cost estimates, the possibility of unanticipated costs and expenses and those other risks presented within the Company’s profile on SEDAR+ (www.sedarplus.ca). While these estimates and assumptions are considered reasonable by the Company’s management, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, the continued availability of capital and financing, general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary governmental permits, approvals and permits, failure to maintain or obtain community (including First Nations) acceptance, risks related to unexpected operational difficulties (including failure of equipment or processes to perform in accordance with specifications or expectations, Cost escalations, unavailability of personnel, materials and equipment, government actions or delays in receipt of government approvals, industrial disruptions or other functional actions, unforeseen events related to health, safety and environmental matters), risks related to inaccurate geological, mineralogical, engineering and pricing assumptions, declines in rare earth prices, the impact of viruses and diseases on the Company’s ability to operate, restrictions on labor, international travel and supply chains, loss of key employees, consultants, officers or directors, increased costs, delays in results, litigation and counterparty failures. in performing their contractual obligations. The Company undertakes no obligation to update forward-looking statements or forward-looking information, except as required by law.
Prepared by Resource World Magazine Inc. This editorial is for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed here. The information provided is derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account readers’ investment criteria, investment experience, financial situation, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for some persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.
