HALIFAX, NOVA SCOTIA--(Marketwire - March 15, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ucore Rare Metals Inc (TSX VENTURE:UCU) (the "Company" or "Ucore") announced today that it has obtained a receipt for the filing of a preliminary short form prospectus dated March 15, 2013, in all of the provinces of Canada, except Québec, in respect of an offering (the "Offering") of units of the Company (the "Units"). Each Unit will be comprised of one common share in the capital of the Company (a " Common Share") and one half of one Common Share purchase warrant (the "Warrants", and each a "Warrant"). The price of each unit will be determined prior to the filing of the final short form prospectus (the "Offering Price"). Each whole Warrant will entitle the holder thereof to purchase one Common Share for a period to be determined prior to the filing of the final short form prospectus. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance of the TSX Venture Exchange.
The Offering will be conducted on a best efforts agency basis. Byron Capital Markets Ltd., as Canadian agent, and Knight Capital Americas LLC, as United States agent, are the agents for the Offering (collectively, the "Agents"). The Agents will be granted an option (the "Over-Allotment Option"), exercisable at any time until 30 days following the closing of the Offering, to sell up to such number of additional Units at the Offering Price or additional Warrants at the Offering Price less the value of the Common Shares, as is equal to 15% of the number of Units sold pursuant to the Offering, to cover over-allotments, if any, and for market stabilization purposes.
In consideration for the services to be rendered by the Agents under the Offering, the Agents will receive a cash commission of 6% of the gross proceeds of the Offering (including any Units issued as a result of the exercise of the Over-Allotment Option). The Agents will also receive broker warrants to purchase an aggregate number of Common Shares equal to 6% of the number of Units issued under the Offering (including Units issued upon exercise of the Over-Allotment Option).
The Company plans to use the proceeds of the Offering to fund continued development of the Bokan Mountain / Dotson Ridge property in Alaska, including environmental studies and permitting, continued metallurgical testing including pilot plant scale magnetic sorting and extraction testing, additional field drilling and preparation of a feasibility study and for working capital and general corporate purposes.