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HALIFAX, NOVA SCOTIA--(Marketwired - Mar 3, 2016) - Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or the "Company") is pleased to announce that, subject to regulatory approval, foreign investment fund Concept Capital Management (the "Investor") has exercised its right to convert a portion of its investment in a royalty on the sale of products and services related to the processing of rare earth elements and other specialty metals (the "Royalty") into common shares of the Company.
The Royalty is with respect to sales / income associated with the Company's first installation utilizing Molecular Recognition Technology (see Ucore press release dated December 14, 2015).
Under the terms of the original agreement, the Investor agreed to pay a total of USD $5 million for the Royalty, with USD $2.5 million being paid in December of 2015 and the remaining USD $2.5 million to be paid in April of 2016. The Company has agreed to allow the Investor to convert the USD $2.5 million already paid for the Royalty into common shares of the Company in exchange for the Investor's agreement to increase the payment due in April 2016 from USD$ 2.5 million to USD $5 million and a firm commitment on behalf of the Investor to exercise its option to increase its Royalty investment by USD $1 million under the terms of the original agreement. The conversion will take place at a price of CAD $0.26625 per share, resulting in a total of 12,676,050 shares being issued, using a foreign exchange rate of $1.35 CAD / USD.
All included, the Investor has committed to a total investment of USD$8.5 million (approx. CAD$11.5 million) since December 14, 2015. The conversion and amendment to the original royalty agreement are subject to the approval of the TSX-Venture Exchange.
Ucore Rare Metals is a development-phase company focused on rare metals resources, extraction and beneficiation technologies with near term potential for production, growth and scalability. On March 3, 2015, Ucore announced the right to acquire a controlling ownership interest in the exclusive rights to IBC SuperLig® technology for rare earths and multi-metallic tailings processing applications in North America and associated world markets. The Company has a 100% ownership stake in Bokan- Dotson Ridge ("Bokan"), the highest grade heavy rare earth project within the United States based on NI 43-101 standards. On March 31, 2014, Ucore announced the unanimous support of the Alaska State Legislature for the investment of up to USD $145 Million in the Bokan project at the discretion of the Alaska Import Development and Export Agency ("AIDEA").
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined by the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Mr. Jim McKenzie
President and Chief Executive Officer
Ucore Rare Metals Inc.
+1 (902) 482-5214