Ucore Rare Metals Inc. (TSX-V:UCU) (OTCQX:UURAF) is pleased to announce that it has closed its previously announced financing agreement with Orca Holdings, LLC of Alaska to sell and leaseback from Orca its SuperLig®-One MRT Rare Earth Pilot Plant.
As previously announced, the Pilot Plant will be sold to Orca Holdings, LLC for total proceeds to Ucore of CAD$2.5 million (USD$2 million). Orca will subsequently lease the Pilot Plant to Ucore over a 3-year term at an annual lease rate of 15%. 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 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 (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.
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