TSX Shariah screener · October 2026
Is Defense Metals Corp. (DEFN) Halal?
Defense Metals Corp. · TSXV: DEFN · Materials
The short answer
Defense Metals Corp. (TSXV: DEFN) is a PASS in our October 2026 screen — all three gates pass. The business gate passes (exploration-stage rare-earth company at the Wicheeda project in BC; despite the name, it does not manufacture weapons). The debt gate passes: interest-bearing debt is effectively C$0 at March 31, 2026 (the C$3.45M convertible debt was fully settled during the year) — 0.0% of the ~C$51.4M market cap (395,148,050 shares at C$0.13, the September 30, 2026 price). The income gate passes: interest income was a C$5,259 net charge in FY2026 (the company has no revenue), effectively 0% of income.
Gate 1 — Business activity: PASS
Defense Metals is an exploration-stage company focused on the Wicheeda Rare Earth Element deposit in British Columbia, Canada (PFS completed May 2025). Despite the name, the company does not manufacture weapons — it explores and develops rare-earth mineral deposits used in EVs, high-strength magnets and green-energy technologies. Mining exploration is a permissible business; no alcohol, pork, gambling, conventional finance, tobacco, cannabis or weapons-manufacturing lines. Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
At March 31, 2026 the company reported no borrowings: the convertible debt of C$3.45M (March 31, 2025) was fully settled during the year (32M shares issued May 2025), leaving only a C$12,579 current lease liability. Interest-bearing debt is effectively C$0 — 0.0% of the ~C$51.4M market cap (395,148,050 shares at C$0.13, the September 30, 2026 price). Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: PASS
The FY2026 audited statements (year ended March 31, 2026) report 'interest income' of C$(5,259) — a small net charge — versus C$1,135 of interest income in FY2025. The company has no revenue, so interest income is effectively nil, ~0% of income. Gate 3 passes. Facts only.
Key figures used
- Interest-bearing debt effectively C$0 at Mar 31, 2026 (convertible debt C$3.45M settled; only C$12,579 current lease liability) → 0.0% of ~C$51.4M market cap.
- 395,148,050 shares outstanding (MD&A Jul 29, 2026); Sep 30, 2026 price C$0.13.
- Interest income C$(5,259) FY2026 (net charge) vs C$1,135 FY2025; no revenue.
- FY2026: net loss C$5.2M; cash C$12.9M; working capital surplus C$11.2M.
- Wicheeda REE project, BC; PFS May 2025; listed TSX-V (venture), OTCQB DFMTF.
- No Zoya, Musaffa or ShariaPortfolio rating found for DEFN.
Frequently asked questions
Is Defense Metals (DEFN) halal?
Our October 2026 screen gives Defense Metals (DEFN) a PASS. All three gates pass: the business is rare-earth exploration at the Wicheeda project in BC (permissible; despite the name, the company does not manufacture weapons), interest-bearing debt is effectively C$0 at March 31, 2026 (the convertible debt was settled during the year), and interest income was effectively nil (a C$5,259 net charge in FY2026; the company has no revenue). No Musaffa/Zoya/ShariaPortfolio rating was found.
Why did Defense Metals pass the debt gate?
At March 31, 2026 the company reported no borrowings: the convertible debt (C$3.45M at March 31, 2025) was fully settled during the year, leaving only a C$12,579 current lease liability. Debt is effectively C$0 - 0.0% of the ~C$51.4M market cap (395,148,050 shares at C$0.13, the September 30, 2026 price). Gate 2 passes.
What does Defense Metals do?
Defense Metals is an exploration-stage company focused on the Wicheeda Rare Earth Element deposit in British Columbia, Canada. Rare earths are used in EVs, high-strength magnets and green-energy technologies (some end-uses are defense-related, but the company itself explores and develops mineral deposits - it does not manufacture weapons). Mining exploration is a permissible business.
Does Defense Metals earn interest income?
The FY2026 audited statements report 'interest income' of C$(5,259) - a small net charge - versus C$1,135 of interest income in FY2025. The company has no revenue, so interest income is effectively nil, ~0% of income. Gate 3 passes.
Where can I find more mining stock screeners?
See our full list of stock screeners at halal-stock-verdicts.html, which covers every company screened so far.
Sources
- Defense Metals FY2026 audited financial statements (Mar 31, 2026: zero borrowings; interest income C$(5,259); no revenue)
- Defense Metals FY2026 MD&A (395,148,050 shares outstanding, Jul 29, 2026)
- DEFN price C$0.13 as of 30 Sep 2026 (Kalkine)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.