Presidential Determinations on REE Production a Defining Event for Ucore
Halifax, July 25, 2019 - - (July 25, 2019) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") commends the White House for its five (5), presidential determinations issued July 22, 2019, concluding that domestic rare earth processing capabilities are essential to national defense (the "Determinations").
The Defense Production Act of 1950, as amended, requires the president to make one or more Determinations in order to authorize the U.S. government to invest directly into privately-owned manufacturing capabilities.
The Determinations, issued this week, identify shortfalls in the entire REE supply chain in the United States. Specifically, these include the capacity of separation and processing of Heavy Rare Earth Elements and Light Rare Earth Elements to meet the needs of modern U.S. military platforms - capabilities that Ucore is in the advanced stages of establishing on U.S. soil.
"We applaud the White House for taking immediate steps to secure the supply of rare earths within the U.S.," said Jim McKenzie, President and CEO of Ucore. "American dependency on non-allied sources threatens to undermine national security interests at the most basic levels. This dependency is a significant impediment to the strength of U.S. positioning in negotiations with foreign suppliers, most notably China. The Determinations issued this week by the White House are yet another aggressive step towards the U.S. acting quickly to rectify this disadvantage."
"Ucore has spent several years preparing for the events now unfolding in the U.S. REE market," said Pat Ryan, Chairman of Ucore. "The Company is well positioned to satisfy the needs of U.S. defense and commercial markets by installing REE separation and processing capabilities in Alaska, secured by our prime critical minerals project at Bokan-Dotson Ridge. The Trump Administration, through the Department of Defense and Department of Commerce, is acting rapidly to sling shot the U.S. REE industry as a competitive force on the world stage. We look forward to working with the U.S. government and the Alaska Industrial Development and Export Authority [AIDEA] on this important initiative."
"The Bokan-Dotson Ridge Rare Earth Project property is an estimated 82% Indicated and 18% Inferred Mineral Resource [see Ucore May 11, 2015 press release] under NI-43-101 definitions; containing the highest-grade of heavy rare earth elements on U.S. soil," said Mike Schrider, COO of Ucore. "Ucore has invested in excess of $35M in exploration, mineral resource delineation and confirmation, and mine plan development at the site. All of this work has been performed by some the most prevalent and credible advisors in the mining sector. These include Aurora Geosciences, Hazen Laboratories, Knight Piésold, SGS, SRK, Stantec, Tetra Tech, Trinity Consultants, et al. There is little doubt as to the strategic value of this asset to the United States, and the implications of the project to U.S. independence in the production of heavy REE."
The White House's Determinations follow a report released by the U.S. Department of Commerce in June, A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals, (see Ucore June 13, 2019 press release) which calls upon the U.S. government to invest in and streamline the governmental encumbrances of domestic production necessary to restore resiliency to the supply chain of 35 critical minerals (which includes the REE).
The five Determinations, specific to Rare Earths, are available for public viewing at the following links:
- HREE Separation
- LREE Separation
- REE Metals and Alloys
- SmCo Magnets
- NdFeB Magnets
About Ucore
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. The Company has a 100% ownership stake in the Bokan-Dotson Ridge Rare Earth Project. On March 31, 2014, Ucore announced the unanimous support of the Alaska State Legislature for Senate Bill 99 (2014), which authorized the AIDEA to issue up to USD $145 Million in bonds for the infrastructure and construction costs of the Bokan-Dotson Ridge Rare Earth Project.
Ucore's vision and plan is to transition to become a leading nanotechnology company that provides mineral separation products and services to the mining and mineral extraction industry. This vision includes the development of a Strategic Metals Complex (initially announced on Nov. 15, 2016) in Ketchikan, Alaska and the development of the Company's rare earth minerals property located at Bokan Mountain in Alaska (technical report filed on SEDAR on March 14, 2013).
For further information, please contact Mr. Jim McKenzie, President & CEO of Ucore Rare Metals Inc. at: +1 (902) 482-5214 or visit www.ucore.com.
Cautionary Notes
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release (other than statements of historical facts) that address future business acquisition activities (including any related required financings), timelines, litigation outcomes, events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance or results and actual results or developments may differ materially from those in forward-looking statements. Ucore has assumed that it will in the near future be able to obtain interim financing and sufficient additional financing to acquire IBC in compliance with the terms contemplated in the existing agreements with IBC and its shareholders holding a majority of its shares. Ucore has also assumed that there will be no material adverse findings in its upcoming expected comprehensive due diligence review of IBC. Factors that could cause actual results to differ materially from those in forward-looking statements include: Ucore not being able to raise sufficient funds to acquire IBC (including the non-acquisition payments owed under the previous and existing agreements); adverse capital market conditions; unexpected due diligence findings; unexpected or adverse outcomes in the currently outstanding litigation matters between Ucore and IBC; resistance to or noncompliance by IBC or its key shareholders with the existing agreements; the emergence of alternative superior metallurgy and mineral separation technologies; the inability of IBC to retain its key staff members and clients; the inability of IBC to protect its intellectual property; unexpected transaction costs or other deal completion setbacks; the availability and procurement of any required interim financing that may be required; and general economic, market or business conditions.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46515