Defense Metals Corp. issues Convertible Note to RCF Opportunities Fund II L.P.

DENVER, Oct. 11, 2024 (GLOBE NEWSWIRE) -- RCF Opportunities Fund II L.P. ("RCF”) reports that it has filed an early warning report under National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection to its acquisition of a C$500,000 secured convertible note (the "Convertible Note”) issued by Defense Metals Corp. (the "Company”) to RCF as part of the Company's non-brokered bridge financing of secured convertible notes (the "Note Financing”).

On October 11, 2024, the Company issued the Convertible Note to RCF pursuant to the Note Financing. Pursuant to the terms of the Convertible Note, at any time up to seven days prior to a Mandatory Conversion Event (as defined in the Convertible Note), RCF may elect to convert the principal amount of the Convertible Note into Common Shares at a deemed price per Common Share of C$0.125 (the "Conversion Price”), in accordance with the terms set out in the Convertible Note. Upon the occurrence of a Mandatory Conversion Event, the principal of the Convertible Note will automatically convert into Common Shares at a 15% discount to the applicable price of the offering implied by such Mandatory Conversion Event, provided that if such conversion price would be less than the Conversion Price, there will be no mandatory conversion.