Ucore Rare Metals Inc. March 13 reported that it has secured an option to acquire the outstanding shares of IBC Advanced Technologies, a company that has been instrumental in designing and developing a rare earth separation process for Ucore.

Ucore paid US$650,000 to enter the two-year option.

Under the terms of the agreement, Ucore will have the right to purchase the outstanding shares of IBC for US$10 million cash and 10 million Ucore units, which includes one Ucore share and half of a purchase warrant.

The agreement also includes performance incentives for key IBC personnel.

"This option to purchase agreement is a major milestone for Ucore," said Ucore President and CEO Jim McKenzie. "IBC is already a world leader in molecular recognition technology for the mining industry, with an existing customer base spanning several continents and including majors such as Asarco Grupo Mexico (USA), Impala Platinum of South Africa, Tanaka Kikinzoku K.K. of Japan, Sino Platinum of China and LS Nikko of Korea. Remarkably, this initiative places us in a position to assume and accelerate a business platform that IBC has established over almost 30 years in business."

A 2015 licensing agreement between Ucore and IBC calls for the creation of a joint venture that would have the exclusive rights to IBC's Superlig molecular recognition technology for rare earth separation, certain recycling applications, and tailings processing.

To complete the license agreement, Ucore agreed to pay IBC US$2.9 million and has paid US$1.9 million so far.

Completion of the licensing agreement is a requisite for Ucore to complete the option to buy IBC.

-SHANE LASLEY