On August 10, 2017, Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) (“Ucore”) announced that it had closed its previously announced financing agreement with Orca Holdings, LLC (“Orca”) of Alaska to sell and leaseback from Orca its SuperLig®-One MRT Rare Earth Pilot Plant.
The pilot plant will be sold to Orca for total proceeds to Ucore of $2.5 million. Orca will subsequently lease the pilot plant to Ucore over a 3-year term. At the option of either party, the lease may be terminated upon the payout by Ucore of the purchase price at any time commencing the second year of the term.
Further to the agreement, US$1 million will be budgeted and set aside for payment to IBC Advanced Technologies of American Fork, Utah for the balance outstanding under the joint venture agreement between IBC and Ucore to pursue rare earth separation, tailings processing and catalytic converter recycling applications.
Ucore is a development-phase company focused on rare metals resources, extraction and beneficiation technologies.
Miller Thomson advised Ucore in this matter with a team that included Geoff Clarke and Jonathan Tong.