Ucore Advances Nova Scotia Case Involving Acquisition of IBC
Halifax, October 31, 2019 - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") announces the following updates regarding legal actions stemming from the proposed acquisition of IBC Advanced Technologies, Inc. and specifically, the enforceability of the Option to Purchase Agreement ("OTP") and allegedly defamatory public comments made by IBC Advanced Technologies, Inc. and Steven R. Izatt (collectively, "IBC").
Ucore vs. IBC commenced on December 11, 2018, in the Supreme Court of Nova Scotia. After an extensive jurisdictional appeal process, initiated by IBC, including a refusal to stay the proceedings by the Supreme Court of Canada, IBC filed their defence on October 21, 2019. This now marks the commencement of the disclosure of documentation period leading to examinations for discovery. The earlier interim injunction preserving the status quo while the matter is litigated will be considered in an interlocutory injunction hearing, which will proceed at 9:30 a.m. on December 4, 2019.
"Ucore is grateful to the Canadian and Nova Scotia legal system for their decisive rulings to ensure that this dispute is rightfully considered where it was first filed, in the Supreme Court of Nova Scotia," stated Jim McKenzie, Ucore President & CEO.
Other Recent Litigation Updates
IBC vs. Ucore, et al. commenced on February 19, 2019, and is currently before the U.S. District Court, District of Utah (the "U.S. Federal Court") which decided on October 25, 2019, to uphold jurisdiction in this aspect of the dispute. .
IBC vs. Michael L. Schrider (Ucore's COO), et al. commenced on October 18, 2019 and is currently before the U.S. Federal Court involving unfounded allegations, made by IBC, of misconduct regarding a non-disclosure agreement. IBC had previously obtained a Temporary Restraining Order ("TRO") in connection with that litigation. The TRO was obtained without prior notice to Mr. Schrider. That TRO was rendered moot, and expired on Monday, October 28, 2019, at 4:23 p.m. MDT by its own terms. It has not been extended. A scheduling conference is planned for Thursday, October 31, 2019, in Federal Court.
Decisions of the Nova Scotia Supreme Courtand the Nova Scotia Court of Appeal may be accessed from its website, as they are posted by the courts: https://decisions.courts.ns.ca/nsc/en/nav.do. More information on the Nova Scotia proceedings can be obtained in person at the Law Courts, 1815 Upper Water Street, Halifax, Nova Scotia. More information on the Nova Scotia and other proceedings, generally, can be obtained under the Company's profile on SEDAR (www.sedar.com) or by contacting Mark MacDonald, Vice President Business Development at (902) 482-5214 or info@ucore.com.
About Ucore
Ucore Rare Metals is a company focused on rare and critical 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 advanced technology company that provides mineral separation products and services to the mining and mineral extraction industry. This vision includes the development of the Alaska SMC in Southeast Alaska and the development of the Company's rare earth minerals property located at Bokan Mountain in Alaska (an NI-43-101 technical report was 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 <http://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 development and/or 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 the proceeds from its rights offering will be utilized in the manner described in the Company's rights offering circular. Regarding Ucore's M3 Plan of Action and the disclosure in the "About Ucore" section above, the Company has assumed that it will be able to procure or retain geometallurgy partners and/or suppliers, including a solvent extraction ("SX") partner or SX supplier for Ucore's expected future Alaska Strategic Metals Complex ("Alaska SMC"). Ucore has also assumed that sufficient external funding will be found to prepare a new NI 43-101 technical report that demonstrates that the Bokan Project is feasible and economically viable for the production of both REE and co-product mineral materials and metals and the then prevailing market prices based upon assumed customer off-take agreements. Ucore has also assumed that sufficient external funding will be found to develop the specific engineering plans for the Alaska SMC and its construction. Ucore has also assumed that it will in the near future be able to obtain interim financing and sufficient additional financing to acquire IBC Advanced Technologies, Inc. ("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 procure an SX partner or supplier for the Alaska SMC; Ucore not being able to raise sufficient funds to fund the specific design and construction of the Alaska SMC and/or acquire IBC (including the non-acquisition payments owed under the previous and existing agreements with IBC); 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 metal 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; a change in the legislation in Alaska and/or in the support expressed by AIDEA regarding the development of Bokan; the availability and procurement of any required interim and/or long-term financing that may be required; and general economic, market or business conditions.
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