Ucore Announces CAD $2.5M Financing
July 31, 2017 (Source) – Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) (“Ucore” or the “Company”) is pleased to announce that it has entered into a financing agreement with Orca Holdings, LLC of Alaska (“Orca”) to sell and leaseback from Orca its SuperLig®-One MRT Rare Earth Pilot Plant (the “Pilot Plant”).
Under the terms of the finance and leaseback agreement (the “Finance Agreement”), the Pilot Plant will be sold to Orca Holdings, LLC (“Orca”) for total proceeds to Ucore of CAD$2.5 million (USD$2 million) (the “Purchase Price”). Orca will subsequently lease the Pilot Plant to Ucore over a 3-year term at an annual lease rate of 15% (the “Term”). At the option of either party, the lease may be terminated upon the payout by Ucore of the Purchase Price at any time commencing the second year of the Term.
Further to the Finance Agreement, USD$1 million will be budgeted and set aside for payment to IBC Advanced Technologies of American Fork, Utah (“IBC”) for the balance outstanding under the joint venture agreement between IBC and Ucore to pursue rare earth separation, tailings processing and catalytic converter recycling applications (the “Joint Venture”) (see Ucore Press Release dated March 3, 2015). To date, Ucore has completed payments totaling $1.9M of the $2.9M required under the Joint Venture agreement.
“This is a non-dilutive financing arrangement which leverages a significant asset for go-forward development,” said Jim McKenzie, President & CEO of Ucore. “The Pilot Plant has an innovative modular design which can be modified for multiple purposes, whether at its existing location in Utah, or as the expandable framework for rare earth output in Alaska or elsewhere. We look forward to working with Orca to optimize and generate maximum value from this remarkable development platform.”
Closing of the foregoing transaction is subject to the approval of the TSX-Venture Exchange.
Get our daily investorintel update
Ucore Rare Metals is a development-phase company focused on rare metals resources, extraction and beneficiation technologies with near term potential for production, growth and scalability. On March 3, 2015, Ucore announced the development of a joint venture with IBC for the deployment of SuperLig® Molecular Recognition Technology for REE and multi-metallic tailings processing applications in North America and associated world markets. The Company has a 100% ownership stake in the Bokan project. On March 31, 2014, Ucore announced the unanimous support of the Alaska State Legislature for the investment of up to USD $145 Million in the Bokan project at the discretion of the Alaska Import Development and Export Agency (“AIDEA”).
This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities, research and development timelines, and events or developments that the Company expects, are forward looking statements. Forward looking statements in this press release include that we may enter into a long-term supply partnership and offtake relationship and the possibility of an independent North American REE supply chain. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes or setbacks, research and develop successes or setbacks, continued availability of financing, that we may not be able to reach agreements, that the product may not be suitable for intended uses, and general economic, market or business conditions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined by the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.