Ecclestone on the MRT phenomenon at Ucore
July 23, 2015 — In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Christopher Ecclestone a Global Analyst for InvestorIntel and Principal and mining strategist at Hallgarten & Company on Hallgarten’s recent coverage of Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF). In the interview they discuss how the Ucore molecular recognition technology phenomenon has “fired up their stocks”, how it works and the real global market potential.
Tracy Weslosky: Christopher I was delighted to see that Hallgarten & Company has just started covering Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF). Can you tell me a little bit about this?
Christopher Ecclestone: Well, we’re just putting out a note, which will be dealing with the MRT phenomenon at Ucore, which really has appeared on the scene since March and has really livened up the stock price of Ucore massively. People are starting to wonder what this new thing is. Our note is essentially about MRT and the effect it’s had on the financing prospects of Ucore.
Tracy Weslosky: Well, I see that you put a $0.92 12-month price target, which is phenomenal. What is that up? 140%?
Christopher Ecclestone: Let’s hope so. The reason that I’ve done that is because, you know, the rare earth sector is essentially a sector at the moment, like much of the mining sector, is very impoverished. Very capital poor, financing poor. Ucore, like the rest, has, you know, had to struggle with the finances and now they’re coming out of that phase. They have two things happening. I mean, they’ve sold a royalty on their MRT technology, just brought in a big wad of cash and then beyond that they have other people lining up to take on and acquire other royalties on the technology. Beyond that that’s fired up the stock price, which means that now at levels that around $0.40 and above the large amount of warrants that the company have are in the money and so it’s very likely that they will be exercised as well. In a sea of paupers, Ucore will be relatively well off and that’s one of the reasons why I feel that their stock price will outperform and that’s why I feel like the target that I do on it.
Tracy Weslosky: Well, I tell you, this will be some very good news for the overall rare earths market. I want to back you up for just a moment. For those in the audience who don’t know what MRT is yet, it stands for molecular recognition technology. Christopher, you know what I’m going to ask you, because you are incredibly bright: what is MRT and how does this work?
Christopher Ecclestone: Oh, Tracy that’s a bit of a daunting question there because, you know, MRT there’s two versions there. There is the very complicated Nobel prize winning version, which I could bore everybody to tears with, and then there is what is the technology and how does it work. Essentially it has these things called ligands. These ligands essentially attract the metals and then the metals can be extracted and negates the need to use the traditional solvent extraction, which has a large component of acid involved in it and enormous capex. That is the attraction of MRT. It’s not necessarily simpler, but it…to access the rest of the interview, click here
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