HALIFAX, NOVA SCOTIA–(Marketwired – Jan 15, 2016) – Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) (“Ucore” or the “Company”) is pleased to provide an update on corporate matters.
The Company announces that, subject to regulatory approval, two high net worth US-based investors (the “Investors”) have exercised their right to convert their investments in a royalty on the sale of products and services related to the processing of rare earth elements and other specialty metals (“the Royalty”) into common shares of the Company.
The Royalty would have been paid on sales / income associated with the Company’s first installation utilizing Molecular Recognition Technology.
The Investors paid a total of USD $5.3 million for the Royalties, and the conversion will take place at a price of CAD $0.25 per share, resulting in a total of 30,470,760 shares being issued, using a foreign exchange rate of $1.44 CAD / USD.
Additionally, the Company announces that, subject to regulatory approval, it has retained Venture Liquidity Providers Inc. (“VLP”) to initiate its market making service to provide assistance in maintaining an orderly trading market for the common shares of the Company.
The market making service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Ltd., in compliance with the policies of the TSX Venture Exchange and other applicable legislation. The Company will pay VLP $5,000 per month. The engagement is for a period of 12 months, but can be terminated by either party at any time with written notice. The Company and VLP act at arm’s length, and VLP has no present interest, directly or indirectly, in the Company or its securities. The finances and the shares required for the market making service are provided by W.D. Latimer. The fee paid by the Company to VLP will be for services only.
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 right to acquire a controlling ownership interest in the exclusive rights to IBC SuperLig® technology for rare earths and multi-metallic tailings processing applications in North America and associated world markets. The Company has a 100% ownership stake in the Bokan- Dotson Ridge rare earth project (“Bokan”). 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”).
VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX-V listed issuers.
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