Ucore Rare Metals Inc. Jan 15 said two U. S.-based investors have exercised their right to convert their investments in a royalty related to the processing of rare earth elements and other specialty metals into common shares of the company.

The royalty would have been paid on sales and income associated with the Ucore's first installation utilizing molecular recognition technology. The US$5.3 million the investors paid for the royalties will be converted at a rate of C25 cents per Ucore share, resulting in a total of 30,470,760 shares being issued.

The majority of those shares (81 percent) are owned by Orca Holdings LLC, a Ketchikan, Alaska-based enterprise controlled by Ucore advisory board member Randy Johnson.

The transaction resulted in Orca becoming a 10 percent shareholder of Ucore, and Johnson is now a reporting insider of the company.

Johnson believes the best way for Orca and its shareholders to benefit coming from the upside of Ucore, especially at current U. S.-Canadian dollar exchange rates, is to convert its royalties into company shares.

"Orca has elected to convert its royalty into shares for many reasons, all of which have to do with our very strong belief in Ucore as an emerging leader in the global rare metals business," explained Johnson."Orca is going long on Ucore, and we believe that the most effective way to obtain appreciation in our investment is via equity as opposed to a debt (royalty-based) position."

Johnson said Orca is committed to retaining its position in Ucore over a number of years.

"We're extremely pleased to welcome Mr. Johnson as a reporting insider of Ucore," Ucore President and CEO Jim McKenzie said. "Randy has built an impressive industrial resume in Alaska and beyond, and his experience in company-building will be a significant asset and resource to us as Ucore enters its early production phase."

-SHANE LASLEY