Alaska Government Development Agency Enters Financing Discussions with Ucore
October 22, 2018 – HALIFAX, NOVA SCOTIA – Ucore Rare Metals Inc. (TSXV:UCU) (OTCQX:UURAF) (“Ucore” or the “Company”) is pleased to announce that it has entered financing discussions with the Alaska Industrial Development and Export Authority (AIDEA) for Ucore’s Strategic Metals Complex (SMC), as the initial phase of Ucore’s overall Bokan-Dotson Ridge Rare Earth Mine Project (“Bokan”).
The commencement of discussions has been documented by a Letter of Support (the “Letter”) from AIDEA, now available to the public (see: https://ucore.com/AIDEA_Letter_of_Support.pdf
). The Letter is addressed from John Springsteen, CEO and Executive Director of AIDEA, to Jim McKenzie, President and CEO of Ucore.
Pursuant to the Letter, the parties acknowledge that the construction of the SMC will be the highest development priority, due to market demand, and will pre-date the planned ore extraction infrastructure at the Bokan Rare Earth Element (REE) mine. The Letter also sets out the targeted completion date of late 2020 for the SMC, and will be accepting feedstock from multiple domestic and international locations.
The financing for the production facility is expected to be furnished pursuant to Senate Bill 99, approved by the Alaska Legislature in 2014 (the “Bill”). The Bill provides AIDEA with the discretion to issue up to $145 million dollars in AIDEA bonds to Ucore in order to finance the infrastructure and construction costs of the Bokan REE project. The SMC has been designated as a prospective component of that $145 million undertaking, and as stated in the Letter, AIDEA has now engaged in the process of examining methods to provide funding for the SMC. The AIDEA financing process will ultimately incorporate a review of Ucore’s site selection, capex requirements, opex computations and offtake plans.
Read more at: https://ucore.com/alaska-government-development-agency-enters-financing-discussions-with-ucore