Ucore Rare Metals Inc (UURAF)

[nuketheshorts]

Copied from Stockhouse Board


User avatar
padillbr
1 star
User Actions
12 minutes ago 21 Reads
Post# 29879925
Status Update

Hey guys,

Thought an Update and overview might be good.

Company:

Ucore owns mining rights to Bokan Mountain, a small but high HREE content mine on domestic soil. Additionally, Ucore has exercised its option to purchase IBC (MRT separation technology) which is currently being disputed in court. (IBC wanted a joint venture or renegotiation/ Ucore proceedeed with OTP, IBC claimed Ucore violated the contract). IBC was happy to take option fee but appears to never have wanted an outright purchase.


Current Status:

We are currently awaiting the 3 judge court of appeals panel to issue their written decision from 6/17/19 hearing on IBC's jurisdiction appeal. Initial decision from 4/26/19 can be seen here

https://decisions.courts.ns.ca/nsc/nssc/en/item/400656/index.do?q=ucore

The initial judge took 3 days to make the decision that since IBC attorned, Nova Scotia had Jurisdiction, and IBC was charged $2000 towards Ucore's costs.

If the 3 judge panel upholds the jurisdiction, they will move on to scheduling the Option to purchase hearing (most likely within a month or 2).

Ucore has been all quiet based on recommendations by their attorneys.

Concurrent Planning / Relevant news:

1.) Trade truce has temporarily removed some urgency from the rare earths market, but with tariffs still in play, a geo-political struggle, and various other balls in the air this could change at any time.

2.) Roadless Rule, increased rare earth prices, and increased awareness brings Bokan back into play (Lynas plant in texas may be an option down the line if worst case scenario IBC doesnt work out).

3.) Suncor / Lexi / Kentucky River Properties / Department of Defense / SMC 1 provide huge potential if/when IBC purchase or JV is established.


My view:

Judge will uphold jurisdiction, and OTP validity hearing will occur within the next 2-3 months. Hopefully this will be wrapped up by April-June of 2020.

Ucore will re-start permitting process with Alaska and update PEA in preparation to an eventual mining operation at Bokan. (Would need grants/loans/ or subsidies to be viable at this time)

Ucore most likely has and will continue to explore other possible separation technologies as an alternative to MRT

IBC never thought their value would exceed 10million as they were in financial distress when the OTP was signed. Now that Ucore has developed multiple business opportunities while working with IBC, they are trying to strongarm into a better deal or termination.

Potential:

If IBC purchase is completed, we are talking about billions of dollars worth of deals. The company would proceed to list on the Nasdaq and the return on investment would be enormous.

If Ucore receives subsidies and is able to start a mining operation at Bokan, market cap should 5-10x. (Separation would have to be outsourced to China or another plant, similar to what Mountain Pass is doing until MRT plant or Lynas plant in texas is opened. A domestic magnet facility would be nice too)

Sale of Bokan Mountain and other assets to another Mining company (2-3x market cap)

In either scenario, the risk reward is very appealing, but should only be a small percentage of your investment portfolio. If IBC succeeds in cancelling the OTP and no domestic subsidies materialize, the company may slowly bleed money until bankruptcy or sale of mining rights.