Ucore Rare Metals Inc. Enters into New Credit Facility

May 10, 2023

On May 10, 2023, Ucore Rare Metals Inc. (TSXV:UCU) (“Ucore”) announced it had entered into a financing agreement for up to USD$1 million with Orca Holdings, LLC (“Orca”).  Ucore is focused on rare-earth and critical-metal resources, extraction, beneficiation, and separation technologies. Ucore has an effective 100% ownership stake in the Bokan-Dotson Ridge Rare Earth Element Project in Southeast Alaska, USA. Ucore’s vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Pursuant to the terms of the Secured Credit Agreement, Ucore can draw down up to USD$1.0 million, with this debt maturing on December 31, 2023, with interest payable by Ucore in an amount equal to 10% per annum. Pursuant to the terms of a Secured Credit Agreement, Ucore will issue 1,000,000 warrants (“Warrants”) to Orca whereby each Warrant will entitle Orca to purchase one common share of Ucore (a “Share”) at a price of CAD$1.20 per Share for a term of 12 months. The Warrants will contain a condition precedent to their exercise such that no Warrant shall be exercisable if such exercise would cause Orca’s ownership of Ucore, as calculated on a partially diluted basis, to exceed 19.99%.

Miller Thomson advised Ucore with the regard to the transaction with a team consisting of Geoff Clarke and Anca Nitu (Securities and Capital Markets).