As we’ve mentioned here on Street Register in the recent past, Ucore Rare Metals, Inc (OTCMKTS: UURAF) is in the process of building a rare earth element (REE) extraction facility in Ketchikan, Alaska, which will be used to process materials from its historic Bokan – Dotson Ridge property, which boasts the highest grade deposits of heavy REE’s on American soil.
The property is so rich in REE deposits, in fact, that the company has publicly claimed it could be the end of US dependence on Chinese rare earths. To add validity to the claim, the Alaskan government pledged a sum of $145 million dollars toward the development of the property, including $30M toward the build-out of the Ketchikan facility.
A few weeks ago, Ucore Rare Metals, Inc (OTCMKTS: UURAF) announced it would be executing a private placement to help cover general expenses as it continues to develop the Bokan property, and this week, we saw that the company has completed the first portion of that deal, quickly making good on its earlier statement.
Ucore reported that it has successfully closed the first tranche of its non-brokered private placement by issuing 6,344,074 units at a subscription price of $0.18 per Unit for gross proceeds of approximately $1,142,000.
Each Unit consists of one common share in the capital of the Company and one Common Share purchase warrant. Each Warrant entitles the holder to acquire an additional Common Share at an exercise price of $0.25 until June 8, 2021.
The Private Placement (including the First Tranche) was approved by all of the independent directors of the Company. The number of Common Shares potentially issuable to insiders of the Company pursuant to the Private Placement (including any Common Shares issuable upon the exercise of the Warrants) represent not more than 10% of the Company’s currently issued and outstanding Common Shares on a non-diluted basis. (Source: Globe Newswire)
Meanwhile, Ucore has IBC Advanced Technologies, Inc. assisting in the complex design process for the Ketchikan facility, which has been years in the making, but rapidly approaching the proposed 2020 construction start date. IBC is an award-winning, green chemistry selective separations company based on innovative MRT products with its HQ in American Fork, Utah.
“Completion of IBC’s initial test work and engineering tasks will allow us to engage other engineering specialists regarding the non-MRT [Molecular Recognition Technology] portions of the Plant such as the product dissolution and acid/wastewater recycling sections. Once those systems are designed, we will then be in a position to commence discussions with local Alaskan engineers regarding our facility requirements to house the REE separation plant based on the specific site we select in Ketchikan.” said Mike Schrider, COO of Ucore. (Source: Globe Newswire)
We really like Ucore’s future potential and the deliberate progress it has made toward enacting its goals with Bokan-Dotson Ridge, particularly in keeping a timetable that agrees with the 2020 start date. The local area government agrees, having awarded Ucore with Entrepreneur of the Year by the Ketchikan Chamber of Commerce. The Executive Secretary for the Chamber attributed the recognition by the selection committee to Ucore’s tremendous investment in the region around the development of the Bokan-Dotson Project and proposed Ketchikan material separation complex. We’ll be sure to stay on top of the story as it unfolds.We’ll stay up on any further developments with UURAF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: Affiliates of the Owners of Street Register were previously compensated by Ucore Rare Metals, Inc. for a one month marketing contract which has expired. No one at Street Register holds any position in UURAF stock, short or long.