RE:RE:RE:RE:RE:Breaking NewsDon't sit in the dark "hoping" Pip, go take a look.
HXG will have ~USD700K in the bank end June, ~ 2 x Q's cash burn.
It will need to raise the full USD2M to fund 49% of a very expensive "deal" + at least another USD1M to remain a going concern.
This at a time when some very solid prospects/businesses are offering some very attractive propositions to raise funds.
Here is Ucore's description of the IMC proposition beyond the glossies:
UCORE RARE METALS INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED MARCH 31, 2020
Innovation Metals Corp.’s (“IMC’s”) RapidSXTM mineral processing and purification technology is only at advanced testing stages utilizing a pilot facility in Mississauga, Ontario, Canada and has yet to be proven at a commercial scale in a large REE purification and processing facility. Ucore has not yet prepared or released an economic assessment or feasibility study that utilizes MRT for the separation and production of REEs from the Bokan Property. The following risks are specific to IMC and RapidSXTM:
• The commercial effectiveness of RapidSXTM is subject to uncertainty and risk, and may be affected by many factors, some of which are beyond the Company’s control, including the emergence of newer, more competitive technologies and processes, the cost of building and operating a commercial-scale RapidSXTM facility, regulatory and environmental requirements, unknown profitability performance and financial metrics, the existence, knowledge and cooperation of key individuals of IMC, and the ability to attract customers and sources of feedstock.
Seeing how someone inadvertently C&P MRT in above may as well include that glowing description here as well:
Although an MRT Pilot Plant for REEs has been produced by IBC for Ucore, IBC’s MRT for REEs is only at advanced testing stages and has yet to be proven at a commercial scale in a large REE purification and processing facility. The Company has not yet prepared or released an economic assessment or feasibility study that utilizes MRT for the separation and production of REEs from the Bokan Property. The following risks are specific to MRT REE purification:
• The MRT process is still subject to a high level of uncertainty and risk, and may be affected by many factors, some of which are beyond the Company’s control, including the emergence of newer, more competitive technologies and processes, the cost of building and operating MRT facilities, regulatory and environmental requirements, unknown profitability performance and financial metrics, the existence, knowledge and cooperation of key individuals of IBC, and the ability to attract
customers and sources of feedstock.
• The Company’s announcement on February 14, 2019 indicating that is has issued the Notice of Commencement to purchase IBC and there remains a USD $1 million dollar payment to IBC (“the Legacy Payment”) which must be paid concurrent with the funds required to complete the OTP Agreement, and there remains a risk that the Company will be unable to raise sufficient funds required to make the Legacy Payment.
• Although MRT is a previously commercialized technology in some fields, using MRT to separate REEs and certain other elements to be targeted by the Company will be new commercial applications. To date, the Company has hired IBC to complete lab bench and certain pilot scale testing of the MRT process in relation to REEs. There can be no assurance that MRT will be able to separate these elements at large commercial levels on a profitable basis. In addition, there is inherent variability and uncertainty related to the ability to procure similar-source feed-stocks so that substantial additional research and development and also re-tooling is not required between materials arriving at a commercial facility, such as the prospective Alaska SMC, from different mineral projects.
For Dragon's benefit:
IBC’s MRT for REEs is only at advanced testing stages and has yet to be proven at a commercial scale
not yet prepared or released an economic assessment or feasibility study
MRT process is still subject to a high level of uncertainty and risk
in relation to REEs. There can be no assurance that MRT will be able to separate these elements at large commercial levels on a profitable basis
Basically Ucore is pumping early stage science expriments, GL getting any Govt funding to fall for that, particularly with NO feedstock, NO customers, NO commercial funding.