Business
Ucore Closes $3.6 M Non-Dilutive Financing
Halifax, Nova Scotia--(Newsfile Corp. - April 2, 2019) - Ucore Rare Metals Inc. (TSXV: UCU)...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Closes $3.6 M Non-Dilutive FinancingHalifax, Nova Scotia--(Newsfile Corp. - April 2, 2019) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") is pleased to announce that the Company has entered into a secured loan agreement (the \"Loan\") with Orca Holdings, LLC (\"Orca\") in the amount of CAD $3.6 million (USD $2.7 million).The proceeds from the Loan will be used for general working capital purposes, and to dismiss any short term amounts owing to Orca over the next six months (the \"Short Term Obligations\" or \"STO's\"). The STO's include payments on the sale leaseback, and subsequent repurchase of the Company's Rare Earth Pilot Plant (the under the finance agreement originally announced on July 31, 2017 (the \"Lease Agreement\"). The Loan will terminate on March 31, 2021. Payments which would have otherwise come due under the Lease Agreement between April 1, 2019 and June 30, 2019 will be added to the Principal amount of the Loan. The Loan will bear interest at a rate of 12.5% annually for the first 9 months commencing July 1, 2019 and then at a rate of 15% annually for the 12 months commencing April 1, 2020. The Loan is secured by a first charge on the Company's assets.\"Ucore would like to thank Orca for its continued support as the Company continues to advance its ongoing projects,\" said Jim McKenzie, President & CEO of Ucore. \"This non-dilutive financing further demonstrates the Company's strength and the value of Ucore's assets.\"The transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the considered paid, exceed 25% of the Company's market capitalization. No new insiders and no control persons were created in connection with the closing of the transaction. About UcoreUcore Rare Metals is a development-phase company focused on rare metals resources, extraction and beneficiation technologies with near term potential for production, growth and scalability. The Company has a 100% ownership stake in the Bokan-Dotson Ridge Rare Earth Project. On March 31, 2014, U...