Mining News: News Nuggets: REE technology attracts another investor

Ucore Rare Metals Inc. Aug. 17 reported that a second high-net-worth US-based investor has agreed to purchase a royalty on the sale of products and services related to the processing of rare earth elements and other specialty metals and critical materials with SuperLig Molecular Recognition Technology. Ucore and Utah-based IBC Advanced Technologies formed a joint venture to develop this new method of separating rare earths using molecular recognition technology, a process designed to bind selectively with ions based on multiple parameters such as size, chemistry, and geometry. Under the terms of the JV, Ucore will retain a 60 percent interest and IBC will retain a 40 percent interest in the exclusive rights to the SuperLig MRT platform developed by IBC. The new unidentified investor has agreed to pay US$1 million payment to purchase a royalty of 5 percent of the gross sales from Ucore’s first MRT installation or installations, payable until the recapture of the initial investment; and thereafter a net smelter royalty equal to 0.5 percent of the net sales from Ucore’s first tier I client, which has an estimated gross revenue volume to Ucore exceeding C$50 million per year. In May, another unidentified investor paid US$4 million to purchase a royalty of 5 percent of the gross sales from Ucore’s first MRT installation or installations, payable until the recapture of the initial investment; and thereafter a 2.0 percent net smelter royalty from Ucore’s first tier I client. At a bench scale, the SuperLig platform has successfully separated the entire suite of rare earths. In July, Ucore contracted with IBC for the design and construction of a pilot plant that will test the molecular recognition technology for the separation of REEs at bulk scale. “The intention is for the unit to be a test mule, capable of accepting pregnant leach solution and bulk concentrates from multiple prospective REE feedstock locations around the world,” Ucore President and CEO Jim McKenzie said at the time. “One high-priority source of pilot-scale test material will be the Bokan-Dotson Ridge project in Southeast Alaska.”

- Shane Lasley