Defense Metals (DEFN.V) has entered into a non-binding memorandum of understanding with South Korean shipbuilder Hanwha Ocean to collaborate on rare earth elements and potential investment opportunities, Defense Metals said Wednesday.
Under the terms, the companies will evaluate a framework for a potential long-term offtake agreement, under which Defense Metals could supply certain rare earth materials produced from its Wicheeda rare earths project in British Columbia to support Hanwha's manufacturing and supply chain requirements.
The parties will also explore the possibility of a strategic investment by Hanwha or any of its affiliates in Defense Metals.
"We believe collaboration with a global premium naval vessel manufacturer position both organizations to contribute to a more secure and resilient domestic supply ecosystem while supporting long-term industrial development in Canada," Defense Metals Chief Executive Officer Mark Tory said.
There can be no assurance that the parties will enter into a definitive agreement or complete any transaction contemplated by the MOU, Defense Metals said.