Ucore announces $60 million bought deal financing – Resource World Magazine

Ucore announces $60 million bought deal financing – Resource World Magazine

Ucore Rare Metals Inc. [UCU-TSXV, UURAF-OTQX] has announced details of a $60 million bought deal offering of common shares and will use the proceeds to fund development of a strategic metals complex in Louisiana. The company said an underwriting syndicate has agreed to purchase, on a bought deal basis, 21.4 million common shares priced at $2.80 per share. The offering includes a cornerstone order from a leading fundamental global institutional investor. The underwriters have been granted an over-allotment option to purchase an additional number of shares equal to 15% of the shares sold in the offering. That option can be exercised for up to 30 days following closing which is expected to occur on August 13, 2026. On Friday, Ucore shares eased 5.23% or 18 cents to $3.26. The shares are trading in a 52-week range of $13.07 and $2.21. Through strategic partnerships, Ucore aims to support the development of a more diversified and resilient North American rare earth element (REE) supply chain through the near term development of a heavy and light rare-earth element processing facility in the U.S. state of Louisiana, subsequent strategic metals complexes in Canada and Alaska and the longer-term development of Ucore’s 100%-owned controlled Bokan-Dotson Ridge Heavy REE Project on Prince of Wales Island in Southeastern Alaska. Ucore, has rights to a transformational rare earth separation technology, known as RapidSX. The company has been advancing engineering and commercialization planning to scale a first-of-its-kind RapidSX commercial rare earth refining facility dedicated to samarium (Sm) and gadolinium (Gd) in Kingston, Ont. The project is being advanced in parallel with Ucore’s ongoing scale-up toward a Strategic Metals Complex in Alexandria, Louisiana. The Louisiana SMC is designed to be capable of accepting mixed rare earth carbonate and mixed rare earth oxides from Western-friendly feedstock sources and processing up to 9,600 tonnes per year of contained total rare earth oxides (TREO). The SMC is designed to be constructed and rolled out in modules to take advantage of the inherent flexibility of the RapidSX technology platform and to produce a range of rare earth oxide products and intermediates. Ucore recently said it has been conditionally approved for a Government of Canada contribution of up to $36.3 million for their “Pathway to Samarium and Gadolinium Security” Project. This includes the conditional approval of a non-repayable contribution of up to $26.3 million from Natural Resources Canada (NRCan) through its Global Partnerships Initiative (GPI) Program and up to $10 million from FedDev Ontario, to demonstrate and scale-up a first of a kind commercial processing facility in Kingston, Ontario. The facility would be dedicated to the refining of critical rare earth elements samarium and gadolinium Fielded U.S. and allied weapon platforms, including the F-35 fighter jet, precision-guided missile guidance and actuation systems, and long-range cruise missiles depend on samarium and gadolinium-linked rare earth inputs where performance, reliability and heat tolerance are mission critical.