HALIFAX, NOVA SCOTIA--(Marketwired - Aug. 10, 2017) - Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or the "Company") is pleased to announce that it has closed its previously announced financing agreement (the "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").
As previously announced, 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.
"Ucore continues to deliver uninterrupted operational financing as the Company approaches production commencement," said Jim McKenzie, President and CEO of Ucore. "This particular round is notable for its lack of dilution, and the leveraging of significant value from an existing asset. We look forward to expanding on the prospective capabilities of the SuperLig®-One REE separation platform in applications including oil sands process flow, coal fly ash and tailings remediation, in-situ mining, and more. A word of thanks to Orca for its ongoing investment in this remarkable technology."
Further to the 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.
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.
President and Chief Executive Officer