en.Wedoany.com Reported - On August 6, Canada's Ucore Rare Metals announced the launch of a bought-deal common share offering totaling approximately C$60 million, with proceeds to advance its Louisiana Strategic Metals Complex in the United States and supplement the company's working capital. The facility will primarily use RapidSX technology to produce separated rare earth oxides.
Under the offering terms, a syndicate led by Red Cloud Securities and B. Riley Securities will purchase 21.43 million common shares at C$2.80 per share, with total gross proceeds expected to reach C$60.004 million. The underwriters have also been granted an over-allotment option equal to 15% of the base offering size. The transaction is expected to close on or around August 13, subject to approvals from the TSX Venture Exchange and other institutions.
This financing follows the recently completed equipment scale-up validation work for the project. On August 5, Ucore completed testing and optimization of its RapidSX commercial-scale equipment and finalized the specific configuration of the first enhanced unit. The equipment is designed to process approximately 600 tonnes of rare earth oxides per year, with subsequent factory acceptance testing scheduled to proceed between August and September this year, in preparation for deployment at the Louisiana facility.
Under the current engineering design, the Louisiana facility will be built using a modular construction approach, with three RapidSX production lines configured on the basis of the first unit, for a total design capacity of approximately 9,600 tonnes of rare earth oxides per year. The product range includes rare earth oxides and intermediate products such as neodymium-praseodymium, neodymium, praseodymium, samarium, gadolinium, terbium, and dysprosium, with final production capacity still subject to subsequent construction, commissioning, permitting, and funding availability.
The project previously received US$18.5 million in funding from the U.S. Department of Defense to support the construction of the first commercial-scale RapidSX unit and related infrastructure. This share offering will further supplement project development funding, but as of now it constitutes an announced, pending financing arrangement and cannot yet be characterized as completed fundraising.
