Executives at Halifax-based Ucore Rare Metals (
TSX:V.UCU,
Stock Forum) have their fingers crossed that an initiative currently before Alaska legislators will see state financing of their Bokan-Dotson Ridge project to the tune of $145 million.
The funding would be from the issuance of long term bonds to finance infrastructure and construction costs by the Alaska Industrial Development and Export Authority (AIDEA).
AIDEA is a public corporation of the State of Alaska.
“The Authority has been active in the financing of multiple capital project initiatives in the Alaskan mining sector since 1985,” says the company, “including the DeLong Mountain Transportation System which serves the Red Dog Mine, the Skagway Ore Terminal, the Seward Coal Terminal, mine facilities at Fort Knox, as well as multiple non-mining capital projects, including the Federal Express Maintenance Facility in Anchorage, the Snettisham Hydroelectric Project in Juneau, and the Ketchikan Shipyard in Southeast Alaska.”
The announcement saw shares in Ucore soar Wednesday morning, with stock up 29.63% to $0.35.
In April 2013, the Alaska State Legislature unanimously voted in favor of Senate Joint Resolution No. 8, which states the Legislature's support for continued and increased exploration, extraction, processing and production of rare earth elements in Alaska.
On February 18, Senator Bert Stedman (AK-R) presented an Amendment to Alaska Senate Bill No. 99 that would authorize the bond issuance.
“SB 99 is now expected to be scheduled before the Labor and Commerce Committee for further action in preparation for the scheduling of a vote before the full Senate and presentation to the House of Representatives during the current legislative session,” according to the company.
The Bokan-Dotson Ridge REE project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, B.C.
The company has a market cap of $60.8 million with 173.8 million shares outstanding.