Ucore Rare Metals Closes $4.9 Million Royalty Financing

Ucore Rare Metals (TSXV:UCU) has received approval from the TSX Venture Exchange for its previously announced royalty agreement and has received its first scheduled payment of US$ 1 million.

As quoted in the press release:

The Agreement, with a high net worth US-based investor (the “Investor”), calls for payments totalling USD$4.0 million (approximately CAD$4.9 million) to Ucore in consideration for a royalty (the “Royalty”) on the sale of products and services related to the processing of rare earth elements and other specialty metals and critical materials utilizing SuperLig® Molecular Recognition Technology (“MRT”).

Under the terms of the Agreement, the Investor will make a USD$1.0 million down payment, with the balance payable within 120 days of signing the Agreement. The first payment in the amount of USD$1.0 million has been received by the Company.

In consideration of the foregoing, the Investor will receive a royalty from the production of Ucore’s early stage MRT installations, as previously disclosed and mentioned above.

The Investor has the option to increase the amount of the Investment by up to USD$1.0 million in exchange for a larger Royalty. If, prior to August 13, 2015, the Investor provides written notice to Ucore that it would like to increase the Investment, it can do so in tranches of USD$500,000 in exchange for a pro-rata increase in the Royalty. Each USD$500,000 additional investment will result in an increase in the Royalty by a factor of 0.25%.

Click here to read the Ucore Rare Metals (TSXV:UCU) press release