Equity funding. Defense Metals raised gross proceeds in the amount of $4.6 million from the private placement of 6.3 million flow-through (FT) common shares at a price of C$0.35 per FT share and ~9.0 million units at a price of C$0.26 per unit. Each unit consists of one common share and one common share purchase warrant which may be exercised at a price of C$0.40 for a period of 24 months. Defense Metals may accelerate the expiry of the warrants under certain conditions. Our model had assumed a C$5.0 million equity private placement.Upcoming drill program. The proceeds will be used for the exploration and development of the company’s Wicheeda Rare Earth Element Project. Defense Metals expects to commence a 5,300-meter infill drilling program in May 2022 to expand and upgrade resources which will be incorporated, along with results from the 2021 drill program, into a preliminary feasibility study (PFS) to be released during the first half of 2023.More drill results. Defense Metals' 2021 drilling program entailed 5,349 meters of drilling in 29 holes. To date, the company has released results from 18 drill holes, representing 2,768 meters of drilling, that have returned high-grade intervals, including near surface, and expanded mineralization beyond the mineral resource pit shell. We expect more results to be released shortly.Rating is Outperform. In our view, the Wicheeda Rare Earth Project is shaping up nicely and progress-to-date bodes well for a compelling preliminary feasibility study. Defense Metals is well positioned to benefit from growing demand for rare earths used in electric vehicle batteries, metal alloys, and advanced technology applications. We anticipate interest in off-take agreements and/or strategic partnerships to grow as the company advances toward a PFS. Read More >>