Ucore Secures Line of Credit Financing and Maintains Accelerated Plan for Commercial Deployment of RapidSX

  • Orca Holdings, LLC Provides US$2 Million Line of Credit Facility
  • The primary use of the funds is for the continued construction of Ucore’s commercial rare earth element demonstration plant and its expected commissioning in the fourth quarter of 2022

Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (“Ucore” or the “Company”) is pleased to announce the receipt of financing by way of a secured line of credit in an amount up to reach $2. million (the “Line of Credit”). Proceeds from the Line of Credit will be used primarily to further develop the Company’s RapidSXTM Rare Earth Element (“REE”) commercial demonstration plant (“Demonstration Plant”), which is currently scheduled to be commissioned in fourth quarter of 2022, as disclosed in the company’s Press Release dated July 12, 2022.

The line of credit was extended by Orca Holdings, LLC (“orca“). In consideration for the granting of the line of credit and subject to the approval of the TSX Venture Exchange, two million warrants (“Mandates“) will be issued to Orca, each warrant entitling Orca to acquire one common share of the Company at an exercise price of C$0.75 for a one-year term ending July 20, 2023. The July 21, 2022, the Company applied to the TSXV for stock exchange approval of the issuance of the Warrants.

“Ucore is committed to its path to commercialization of ETRs and greatly appreciates Orca’s continued financial support as we rapidly approach commercial demonstration of our RapidSX™ technology via the demonstration plant,” declared pat ryanP.Eng., Chairman and CEO of Ucore. “As reported in January 2022, Ucore is already working to develop the financing needed to build its first Strategic Metals Complex (SMC), primarily through non-dilutive sources of financing. borrowed through government-backed loan programs and prepayments and supply offtake agreements with Western EV manufacturers and other downstream SMC customers.”

Drawdowns on the line of credit will be available in multiples of $100,000 and will bear interest at a rate of 9% per annum. All amounts due under the line of credit will be repayable at maturity, being six months from the date of execution (January 20, 2023), unless such repayment is accelerated due to the realization by the Company of additional financing on terms acceptable to the Company and the investor(s). The line of credit is secured by a general security agreement on the assets of the company.

Orca is 100% owned by Mr. Randy Johnson, a member of the Ucore Board of Directors. The transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-01 Protection of holders of minority securities in special transactions (“MI 61-101The transaction is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101, as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceeds 25% of the value of the subject matter of the transaction, nor the consideration paid, does not exceed 25% of the market capitalization of the Company No new insider or control person was created in connection with the closing of the transaction The transaction was reviewed and unanimously approved by the Company’s Board of Directors No special committee was established to negotiate, review and approve the line of credit agreement, rather the agreement was negotiated by the Company with Mr. Johnson declaring his conflict of interest and abstaining from participating in the deliberations of the Board of Directors No cash consideration was paid under the line of credit extension, and no commission or similar fees aires have not been paid to anyone. or are issued and filed on SEDAR less than 21 days prior to the date of the line of credit agreement and the expected closing of the issuance of the warrants and the drawing down of the initial tranche of the line of credit since the Company was considering and reviewed financing alternatives and the Company ultimately selected the least dilutive and most shareholder-friendly financing transaction among the alternatives available, namely the line of credit, the terms of which were settled and confirmed by Orca only July 20, 2022.

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About Ucore Rare Metals Inc.

Ucore is focused on rare and critical metal resources, extraction, beneficiation and separation technologies with production, growth and scalability potential. Ucore holds a 100% beneficial interest in the Bokan-Dotson Ridge Rare Earth Element project in Southeast Alaska, United States. Ucore’s vision and plan is to become a leading advanced technology company, providing best in class metal separation products and services to the mining and mining industry.

Through strategic partnerships, Ucore’s vision includes disrupting the People’s Republic of China’s control of the U.S. REE supply chain through the near-term development of heavy and light rare earth processing facilities – including including the Alaska Strategic Metals Complex in Southeast Alaska and the long-term development of the Ucore heavy rare earth mineral resource property located at Bokan Mountain on Prince of Wales Island, in Alaska.

Ucore is listed on the TSXV under the symbol “UCU” and in the United States on OTC Markets’ OTCQX® Best Market under the symbol “UURAF.”

For more information, visit www.ucore.com.

About RapidSX™ Technology

IMC developed the RapidSX separation technology with early assistance from the United States Department of Defense (“United States Department of Defense“), later leading to the production of commercial grade separated rare earth oxides at pilot scale. RapidSX combines the proven chemistry of conventional solvent extraction (“SX“) with a new column-based platform, which significantly reduces completion time and plant footprint, as well as potential capital and operating costs. SX is the element of international rare earth (“ETR“) the industry standard commercial separation technology and is currently used by 100% of all REE producers worldwide for bulk commercial separation of heavy and light REE. Using similar chemistry to conventional SX, RapidSX is not a “new” technology but represents a significant improvement over the well-established, well-understood and proven conventional SX separation technology preferred by REE producers.

Forward-looking statements

This press release contains certain statements that may be considered “forward-looking statements”. All statements in this release (other than statements of historical facts) that address future business development, technology development and/or acquisition activities (including any related required financing), timelines, events, approvals or developments that the Company is pursuing are forward-looking. research statements. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance or results, and actual results or developments may differ materially from those in the forward-looking statements.

Regarding the disclosure in the “About Ucore Rare Metals Inc.” section above, the Company assumed that it would be able to procure or retain additional partners and/or suppliers, in addition to Innovation Metals Corp. (“IMC”), as suppliers for Ucore’s future Strategic Metals Complex (“SMC”). . Ucore also assumed that sufficient external funding would be found to prepare a new NI 43-101 (“NI 43-101”) technical report that demonstrates that the Bokan Mountain Rare Earth Elements (“Bokan”) project is feasible and economically viable. . for the production of REE and metal co-products and then prevailing market prices based on assumed purchase agreements with customers. Ucore also assumed that sufficient external funding would be obtained to further develop the specific engineering plans for the SMC and its construction. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: IMC’s failure to protect its intellectual property rights in RapidSX™; RapidSX™ has failed to demonstrate commercial viability in large-scale applications; Ucore not being able to secure additional key partners or suppliers for the SMC; Ucore not being able to raise sufficient funds to finance the specific design and construction of the SMC and/or the further development of RapidSX; adverse capital market conditions; unexpected results of due diligence; the emergence of new superior metallurgical and metal separation technologies; the inability of Ucore and/or IMC to retain key personnel; a change in the law in Alaska and/or the support expressed by the Alaska Industrial Development and Export Authority (“AIDEA”) regarding the development of Bokan and/or SMC; the availability and receipt of any required interim and/or long-term financing that may be required; and general economic, market or business conditions.

Neither TSXV nor its Regulation Services Provider (as that term is defined by TSXV) accepts responsibility for the adequacy or accuracy of this release.


Marc MacDonald
Vice President, Investor Relations
Ucore Rare Metals Inc.
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/131533