Ucore and U.S. DOD agree on US$18.4 construction funding

Ucore Rare Metals Inc. [UCU-TSXV, UURAF-OTQX] said it has reached a firm fixed-price agreement for an US$18.4 million increase to its current US$4.0 million other transaction agreement with the U.S. Army Contracting Command – Orlando. The purpose of the additional financing is to facilitate the construction of a production ready commercial RapidSX machine and supporting infrastructure in Alexandria, La.

“This U.S. DOD Louisiana SMC funding agreement is a critical step for Ucore’s commercial advancements, but more importantly, for the progression of a Western rare earth supply chain and North American critical metals security, which cannot exist without competitive critical metals processing on the world state,’’ the company said in a press release.

Ucore, based in Halifax, Nova Scotia has rights to a transformational rare earth separation technology, RapidSX. The company is currently undertaking heavy and light rare earth element (REE) separation at demonstration scale at its RapidSX Commercialization and Demonstration Facility in Kingston, Ont. Participants in this project include the U.S. Department of Defense and Canadian Government as Ucore implements its technology transfer plan from demonstration scale to commercial scale at its prospective Louisiana SMC.

Specifically, the latest announcement involves the preplanned expansion of Ucore’s existing rare earth element separation technology capability prototype project, soon to conclude at the RapidSX commercialization and demonstration facility in Ontario.

The additional phase 2 scope of work will further scale up and commercialize Ucore’s RapidSX technology for its developing Louisiana strategic metal complex rare earth element refinery in Alexandria, La.  This will be achieved through the installation of a complex full-scale RapidSX separation machine capable of demonstrating commercial-scale production of Pr, Nd, Sm, Gd, Tb and/or Dy – six of the rare earth elements which are listed by the People’s Republic of China for export licensing restrictions.

The primary objectives of the phase 2.0 project are as follows:

Construct and demonstrate the full-scale RapidSX technology modules at the company’s commercialization and demonstration facility (CDF).

Conduct a system engineering approach to facilitate a knowledge transfer of the innovative RapidSX separation technology from the CDF to the Louisiana Strategic Metals Complex (SMC).

Install production separation capacity at the SMC capable of processing hundreds of tonnes of heavy/or light total rare earth oxide processing utilizing the same RapidSX technology equipment platform.

It is anticipated that upon successful completion of the project, Ucore will continue to construct RapidSX machines to complete its planned 2,000 tonne-per-year TREO phase 1 construction project. The concurrent construction and production efforts are enabled through the unique modular and adaptable attributes of the RapidSX technology platform co-ordinated with the smart acquisition and deployment of investment capital.

Ucore’s initial production of REO in Louisiana is expected to start commissioning by the fourth quarter of 2025 and commence commercial operations in the first half of 2026.

Ucore shares fell on the news, easing 1.28% or $0.02 to $1.54. The shares trade in a 52-week range of $2.26 and 50 cents.