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Orca, CCM support Ucore plan to buy IBC


Last updated 12/28/2018 at 5:43am

Molcular separation technology MRT for refining rare earth elements

Ucore Rare Metals Inc.

A technician operates the control panel of SuperLig One, a rare earth separation pilot plant developed by IBC Advanced Technologies in partnership with Ucore Rare Metals.

Ucore Rare Metals Inc. Dec. 11 reported that two of its major shareholders, Orca Holdings LLC and Concept Capital Management Ltd., were again participants in its latest private placement, which raised C$500,000, significantly higher than the C$350,000 originally announced in November.

At the close of the financing, Ucore issued 3,333,333 units priced at C15 cents each. Each unit consists of one share and half a purchase warrant that gives the holder the right to purchase another Ucore share at C20 cents for a period of 36 months.

Orca and Concept Capital, both Ucore insiders, purchased a combined 2,833,333 units, accounting for roughly $425,000 of the financing.

The funds raised in the financing will help Ucore advance plans to acquire IBC Advanced Technologies Inc., the Utah-based company that developed the molecular recognition technology that is being applied into the Strategic Metals Complex, or SMC, a rare earth element separation facility that Ucore is planning to develop in Ketchikan, Alaska.

"Orca stands firmly behind Ucore and the company's planned acquisition of IBC Advanced Technologies (IBC)" said Randy Johnson, who serves on the Ucore advisory board and is a managing member of Orca Holdings LLC. "Ucore has a very long and successful history of securing patient funds, as and when required, to execute on its go-forward business plans. This strategic private placement is no exception. We look forward to the prospect of significant future revenues as a means of realizing active cash flows, fresh working capital, and as a means of offsetting and limiting share dilution."

Concept Capital supports Ucore's plans to build the SMC, a move that would transition the company from research and development to income generating.

"CCM (Concept Capital) has elected to increase its equity ownership position in Ucore based on our assessment of the strong likelihood of success of the company's current initiatives," said Frank Högel, who serves on the advisory boards of Ucore and Concept Capital. "The planned transition of Ucore into active revenue status is an important threshold for any development stage enterprise. This is a launch position that CCM not only supports, but actively encourages as a means of securing future returns for our shareholders."

The financing was approved by all Ucore's director, none of which are from Concept or Orca.

Ucore has retained the services of Cox & Palmer as the company's Canadian legal counsel to respond to certain assertions made by IBC Advanced Technologies regarding the option to purchase IBC (the "OTP"), and to commence with a related court application.

Ucore and its legal counsel are of the position that the purchase option, as last amended by all parties in June 2016, is a legally binding contract agreed to by Ucore, IBC and the majority of IBC shareholders.

Ucore said it must deliver a notice of commencement to begin the acquisition to IBC by March 16, 2019 and intends to deliver the notice by this date.



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