Ucore Rare Metals (TSX-V:UCU) has closed its previously announced bought deal public offering, raising gross proceeds of C$69 million ($70.15 million)
The company sold 24.64 million common shares at C$2.80 per share, which included 3.21 million shares from the full exercise of the overallotment option for gross proceeds of C$9 million.
Red Cloud Securities acted as sole bookrunner and co-lead underwriter, with B. Riley Securities serving as co-lead underwriter.
Net proceeds will be used to fund the development of Ucore’s Louisiana Strategic Metals Complex in the US, as well as for working capital and general corporate purposes.
The common shares were offered across Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan, alongside private placement sales in select jurisdictions outside Canada.
Located within England Park in Alexandria, Louisiana, the Louisiana Strategic Metals Complex is a 7,506.56sqm brownfield facility dedicated to rare earth element separation and oxide production.
With the facility to be commissioned in stages, Ucore is looking at ramping up production from an initial 2,000 tonnes per annum (tpa) in 2026 to 7,500 tpa in 2028.
Ucore has been awarded US$15 million ($21.24 million) by the state of Louisiana under an incentive scheme, which includes a US$900,000 grant for infrastructure enhancements.
The project is expected to generate 100 family-wage jobs in central Louisiana.
The offering remains subject to final approval from the TSX Venture Exchange.
Ucore Rare Metals focuses on rare and critical metal resources, extraction, and separation technologies with potential for production scalability.
Write to Paula Fabe at Mining.com.au
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