Orca Holdings, LLC Offers US $ 2 Million Credit Line
The main use of the funds is the ongoing construction of Ucore’s commercial rare earth element demonstration plant, which is scheduled to go live in the fourth quarter of 2022.
Halifax, Nova Scotia – (Newsfile Corp. – July 21, 2022) – Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (“Ucore” or “Company”) We are pleased to announce that we have secured funds through a secure credit line of up to $ 2 million (“Credit line“). Revenues from credit facilities are primarily used to facilitate our RapidSX development.MT Rare earth elements (“”ETR“) Commercial Demonstration Plant (“)Demonstration plant“) Is currently scheduled to be published in the fourth quarter of 2022, as detailed in the company’s press release dated July 12, 2022.
The credit line is Orca Holdings, LLC (“”Orca“). 2 million guarantees, subject to the approval of the TSX Venture Exchange, in consideration of the granting of credit lines (“).guarantee“) Is issued to Orca, and each warrant gives Orca the right to acquire one share of the Company’s common stock at an exercise price of CAD 0.75 for one year until July 20, 2023. July 21, 2022. On the day, the company applied to the TSX Venture Exchange for approval of the Stock Exchange for the issuance of warrants.
“Ucore is working on the commercialization of ETR and is very grateful to Orca for its continued financial support in expediting the commercial demonstration of RapidSX ™ technology through the demonstration plant. repair PatrianP.Eng. , President and CEO of Ucore. “As reported in January 2022, Ucore is already working on the financing needed to build the first Strategic Metal Complex (SMC), primarily through non-diluted funding sources. This includes debt financing opportunities through government-guaranteed loan programs, prepayment and supply purchase contracts with western electric vehicle manufacturers and other downstream customers. SMC. »»
Withdrawals from the line of credit are available in multiples of $ 100,000 and generate an annual interest rate of 9%. All credit line amounts will be repaid at maturity of 6 months from the date of execution (January 20, 2023). However, this is not the case if payments are accelerated due to additional funding provided by the company on acceptable terms. And investors. The line of credit is guaranteed by a general guarantee agreement for our assets.
Orca is 100% owned by Randy Johnson, a member of Ucore’s board of directors. This transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-01. Protection of minority securities holders in special transactions (“”MI 61-101The transaction is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 because neither the fair market value of the subject of the transaction nor the consideration paid exceeds 25% of the value of the transaction. No new internal members or managers have been created in connection with the purpose of the transaction, or the consideration paid, in connection with the completion of the transaction, which does not exceed 25% of our market capital. The transaction was reviewed and unanimously approved by the Board of Directors of the Company. No special committee was established to negotiate, review and approve credit line contracts. Rather, the deal was negotiated by the company as Johnson declared the conflict and extended the line of credit ahead of board deliberation. No fees or similar fees were paid to anyone. This press release and exchange representative-related material, while we were considering the date of the credit line agreement, the scheduled termination of the issuance of the warrant, And will be issued and submitted to SEDAR within 21 days of withdrawal of the first tranche of the credit line. Considering alternative lending, we have finally finalized and confirmed the terms of the available alternative lending by Orca as of July 20, 2022, the least dilute and most favorable lending transaction for current shareholders. You have selected no credit line. ..
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About Ucore Rare Metals Inc.
Ucore focuses on important and rare metal resources, extraction, mineral processing and separation technologies, with potential for production, growth and expandability. Ucore owns 100% beneficiary interest in the Bokan-Dotson Ridge Rare Earth Element Project in Southeast Alaska, USA. Ucore’s vision and plan is to become a state-of-the-art technology company that offers best-in-class metal separation products and services. Mining and mining.
Through strategic partnerships, Ucore’s vision includes the short-term development of light and heavy rare earth processing facilities, including the complex Alaska Strategic Metals Complex in southeastern Alaska, and the Ucore Heavy Rare Metal Complex. Land elemental mineral resource asset located on Mount Bokan on Prince of Wales Island, Alaska.
Ucore is listed on the TSX Venture Exchange under the symbol “UCU” and in the United States on the OTC QX® Best Market of OTC Markets under the symbol “UURAF”.
For more information, please visit www.ucore.com.
About RapidSX ™ Technology
IMC has developed RapidSX Separation Technology with initial support from the US Department of Defense (“US Department of Defense“), Then commercial grade isolated rare earth oxides were produced on a pilot scale. RapidSX combines the proven chemistries of conventional solvent extraction (“).SX“) The new column-based platform significantly reduces completion times and plant footprints, as well as potential capital and operating costs. SX is an international rare earth element (“)ETR“) Is an industry standard commercial separation technology and is currently used by 100% of all REE producers worldwide for commercial bulk separation of heavy and light REE. RapidSX is a traditional SX. It uses the same chemistry as, and is not a “new” technology, but it is a significant improvement over the well-established, well-understood, and proven traditional SX separation technology preferred by REE producers.
Description of future prospects
This press release contains certain statements that may be considered “forward-looking statements.” All statements in this release (except statements of past facts) are by future business development, technology development and / or acquisition activities (including necessary funding related), timelines, events, approvals, or companies. It addresses the required development and looks to the future. I’m looking for a statement. We believe that the expectations expressed in these forward-looking statements are based on reasonable assumptions, but these statements do not guarantee future performance or results and are actual results. Or progress may differ materially from those contained in the forward-looking statements.
Disclosure of “About Ucore Rare Metals Inc.” In the previous section, we assumed that we may acquire or retain other partners and suppliers in addition to Innovation Metals Corp. (“IMC”), as a supplier of Ucore’s future Strategic Metals Complex (“SMC”). .. Ucore will also produce a new National Instrument 43-101 (“NI 43-101”) technical report showing that the Bokan Mountain Rare Earth Elements (“Bokan”) project is viable and economically viable. I assumed that I could find enough external funds. .. Production of rare earth metals and by-products, and prevailing market prices at the time based on purchase contracts with customers. Ucore also expects to have sufficient external funding to further develop SMC and the specific engineering plans for its construction. Factors that may cause actual results to differ materially from forward-looking statements include, but are not limited to: IMC does not protect the intellectual property rights of RapidSX ™. RapidSX ™ failed to demonstrate commercial viability in large applications. Ucore will not be able to acquire additional major partners or suppliers of SMC. Ucore is unable to raise sufficient funding to fund SMC’s specific design and construction, and / or further development of RapidSX. Unfavorable capital market conditions; unexpected consequences of due diligence. The emergence of superior alternative metallurgy and metal separation techniques. Ucore and / or IMC cannot hold a primary contact. Changes to Alaska Law and / or Support expressed by the Alaska Industrial Development and Export Authority (“AIDEA”) with respect to the development of Vokan and / or SMC. Availability and acquisition of necessary intermediate and / or long-term financing that may be required. And general economic, business or market conditions.
Neither TSXV nor its regulatory service provider (the term is defined by TSXV) is responsible for the validity or accuracy of this release.
Vice President of Investor Relations
Ucore Rare Metals Inc.
To view the original version of this press release, please visit https://www.newsfilecorp.com/release/131533.