Ucore Rare Metals Inc. has announced the closure of an oversubscribed brokered private placement, with each unit priced at $1.20. This financial milestone was achieved with Red Cloud Securities Inc. acting as the lead agent and Raymond James Ltd. serving as the co-agent. Each unit sold consists of one common share and one-half of a warrant, which can be exercised at $1.75 over the next 36 months. The net proceeds from this placement are earmarked for several critical initiatives related to Ucore's planned Strategic Metals Complex in Louisiana. These initiatives include securing feedstock and offtake agreements, fulfilling commitments to the U.S. Department of Defense and Natural Resources Canada, advancing commercial testing, and making progress in engineering efforts. The total gross proceeds could reach up to $11.5 million if the agents' option is fully exercised, subject to final approval from the TSX Venture Exchange.
The development of the Strategic Metals Complex is a cornerstone of Ucore's strategy to become a leading advanced technology company in the rare- and critical-metal sector. By establishing a heavy and light rare-earth processing facility in Louisiana, Ucore aims to disrupt the current dominance of the People's Republic of China over the North American rare-earth element supply chain. This initiative is not only significant for Ucore's growth but also for the broader industry and national security, as it seeks to ensure a stable and secure supply of these critical materials. The company's long-term vision includes the development of additional Strategic Metal Complexes in Canada and Alaska, along with the exploitation of its Bokan-Dotson Ridge Rare Heavy REE Project in Southeast Alaska.
This funding round represents a critical step forward in Ucore's mission to provide best-in-class metal separation products and services. By leveraging strategic partnerships and advanced technologies, Ucore is positioning itself as a key player in the mining and mineral extraction industry, with a focus on sustainability, efficiency, and independence from foreign supply chains. The success of this private placement underscores the market's confidence in Ucore's vision and its potential to make a significant impact on the rare-earth elements market. The company's progress can be tracked through its official communications at https://ucore.com/investors/news-releases.
