Ucore Rare Metals Inc. Increases Private Placement to C$14 Million to Advance Strategic Projects
- Ucore Rare Metals Inc. upsizes private placement offering from C$10 million to C$14 million due to strong investor demand.
- Proceeds will support strategic initiatives, including a rare-earth processing facility in Louisiana and partnerships to enhance market position.
- Ucore aims to disrupt the rare metals supply chain, focusing on sustainability and innovation in the mining sector.
Ucore Rare Metals Inc. Upsizes Private Placement to Support Strategic Initiatives
Ucore Rare Metals Inc. announces an increase in its brokered private placement offering, reflecting strong investor demand. The company raises its gross proceeds target from C$10.0 million to C$14.0 million, highlighting the growing interest in its initiatives within the rare metals sector. The upsized offering consists of the sale of up to 11,666,667 units priced at C$1.20 each. Each unit comprises one common share and half a warrant, allowing investors to purchase additional shares at C$1.75 within three years. This strategic move positions Ucore to leverage investor enthusiasm for its upcoming projects.
Red Cloud Securities Inc. serves as the lead agent for the offering, which includes an option to sell an additional 1,250,000 units, potentially increasing total proceeds to C$15.5 million. The offering is structured under the listed issuer financing exemption, making it accessible in Canada (excluding Québec) and select jurisdictions outside North America. Ucore's proactive approach to capital raising underscores its commitment to enhancing its operational capabilities and fulfilling existing obligations with the U.S. Department of Defense.
The proceeds from this offering are earmarked for critical initiatives, including finalizing agreements for a strategic metals complex in Louisiana and advancing commercial-scale testing and engineering plans. Ucore envisions developing a cutting-edge heavy and light rare-earth processing facility in Louisiana, which aligns with its mission to disrupt the current supply chain dominated by China. As the company expands its operations in Canada and Alaska, it positions itself as a leader in advanced technology for metal separation products and services in the mining sector, with a long-term focus on sustainability and innovation.
In addition to the private placement, Ucore continues to work on securing strategic partnerships that can enhance its market position. The anticipated closing date for the offering is June 19, 2025, pending necessary approvals, marking a significant milestone in Ucore's growth strategy.
As Ucore Rare Metals Inc. navigates the evolving landscape of the rare metals industry, its commitment to operational excellence and strategic alignment with defense needs positions the company favorably for future success. The increasing demand for rare-earth elements, essential for modern technologies and clean energy solutions, reinforces Ucore's strategic vision and operational objectives.