Business
Ucore Extends Expiry Date of Long-Term Debt
Halifax, Nova Scotia--(Newsfile Corp. - December 2, 2021) - Ucore Rare Metals Inc. (TSXV: UCU...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Extends Expiry Date of Long-Term DebtHalifax, Nova Scotia--(Newsfile Corp. - December 2, 2021) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") is pleased to announce that it has renegotiated the terms of its long-term debt (the \"Loan\") owing to Orca Holdings, LLC (\"Orca\") and that Orca has agreed to extend the maturity date of the Loan for 24 months to November 30, 2023. In consideration of the Loan extension and subject to the approval of the TSX Venture Exchange, one million warrants (\"Warrants\") will be issued to Orca. Each Warrant will entitle Orca to acquire one common share of the Company at an exercise price of CAD$1.20 during a term ending on November 30, 2023. On November 30, 2021, 500,000 earlier-issued warrants held by Orca and related to the Loan, expired.The remaining terms of the Loan and the principal balance outstanding of USD$964,927.81 remain unchanged. The Loan is secured and it bears interest at 9%.\"I am very pleased to be reinforcing my involvement with Ucore during such an exciting time,\" said Randy Johnson. \"Ucore's progress in recent months toward developing the first rare earth separation facility in the United States has been remarkable, and I very much look forward to continuing to work with the team in the coming years.\"Orca is wholly owned by Mr. Randy Johnson, a member of Ucore's Board of Directors. The transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-01 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 consideration paid, exceeds 25% of the value of the subject matter of the transaction, nor the consideration paid, exceeds 25% of the Company's market capitalization. No new insiders and no control persons were created in connection with the closing of the transaction. The transaction was reviewed and unanimously approved by the Company's Board of Directors. No cash consideration was paid pursuant to the extension of the Loan and no commissions or similar fees were paid to any person.About Ucore Rare Metals Inc. Ucore is focused on rare and critical-metals resources, extracti...