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Ucore Secures Line of Credit Financing, Maintains Its Fast Track Plan for RapidSX Commercial Deployment
Orca Holdings, LLC provides a Line of Credit Facility in the amount of USD$2 million Th...
About this update from Ucore Rare Metals Inc.
[{"type":"text","content":"Ucore Secures Line of Credit Financing, Maintains Its Fast Track Plan for RapidSX Commercial DeploymentOrca Holdings, LLC provides a Line of Credit Facility in the amount of USD$2 millionThe primary use of funds is for the continued construction of Ucore's rare earth element Commercial Demonstration Plant and its planned Q4-2022 commissioningHalifax, Nova Scotia--(Newsfile Corp. - July 21, 2022) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (\"Ucore\" or the \"Company\") is pleased to announce the receipt of financing by way of a secured line of credit facility in the amount of up to USD$2 million (the \"Line of Credit\"). Proceeds from the Line of Credit will primarily be used to continue the development of the Company's RapidSXTM Rare Earth Element (\"REE\") Commercial Demonstration Plant (\"Demo Plant\"), currently scheduled for commissioning in Q4 of 2022, as detailed in the Company's July 12, 2022 news release. The Line of Credit has been extended by Orca Holdings, LLC (\"Orca\"). In consideration for granting the Line of Credit and subject to the approval of the TSX Venture Exchange, two million warrants (\"Warrants\") will be issued to Orca, with each Warrant entitling Orca to acquire one common share of the Company at an exercise price of CAD$0.75 during a one-year term ending on July 20, 2023. On July 21, 2022, the Company applied to the TSXV for the exchange's approval of the issuance of the Warrants.\"Ucore is committed to its REE commercialization pathway and is very appreciative of Orca's continued financial support as we rapidly approach the commercial demonstration of our RapidSX™ technology through the Demo Plant,\" stated Pat Ryan, P.Eng., Ucore Chairman and CEO. \"As noted in January 2022, Ucore is already working towards developing the funding required to build its first Strategic Metals Complex (SMC) primarily through non-dilutive funding sources. These include debt financing opportunities through government-supported loan programs and prospective advance payment & supply offtake agreements with Western electric vehicle manufacturers and other downstream customers of the SMCs.\"Drawdowns on the Line of Credit will be available in multiples of USD$100,000 and carry interest at a rate of 9% per annum. All amounts owing under the Line of Credit will be repayable by maturity, which is six months ...