UCORE RARE METALS INC. ("UCU")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: August 19, 2015
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation pursuant to a Production Royalty Agreement dated August 6, 2015 (the "Agreement") between Ucore Rare Metals Inc. (the "Company") and a U.S.A.-based arms length party (the "Investor"), whereby the Investor will receive a royalty (the "Royalty") on the sale of products and services of the Company related to the processing of rare earth elements and other specialty metals and critical materials utilizing SuperLig Molecular Recognition Technology ("MRT").
The Royalty will be comprised of two components: (i) a Gross Royalty equal to 5% of gross sales from the Company's first MRT installation or installations, payable until the recapture of the initial Investment; and thereafter (ii) a Net Smelter Royalty ("NSR") equal to 0.5% of the net sales from the Company's first Tier I production client. The Royalty (minus any amounts already then paid by the Company) may be converted into common shares of the Company ("Shares") at the option of the Investor. If the Investor elects to convert such amount, then Ucore's Royalty obligations shall cease and the conversion amount shall be converted into common shares at the greater of: (i) the 30 day volume weighted average share price of Shares less a 20% discount; or (ii) the Market Price of Shares on the day immediately prior to the conversion date less a 20% discount; or (iii) $0.25 per Share.
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