Ucore Comments on China's Immediate Restrictions on Rare Earth Exports
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF) addresses China's newly announced export restrictions on seven key rare earth elements effective April 4, 2025. The restrictions affect samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.
The company is advancing several strategic initiatives:
- Operating a RapidSX™ Commercial Demonstration Plant in Kingston, Ontario under a USD$4 million US Department of Defense contract
- Developing the Louisiana Strategic Metals Complex (SMC) in Alexandria
- Secured $4.28 million funding from the Government of Canada
- Executed LOI with Louisiana State for estimated USD$15 million in incentives
These developments align with President Trump's March 20, 2025 Executive Order invoking the Defense Production Act to strengthen domestic mineral production, particularly focusing on reducing dependence on foreign rare earth element sources.
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF) affronta le nuove restrizioni all'esportazione della Cina su sette elementi chiave delle terre rare, che entreranno in vigore il 4 aprile 2025. Le restrizioni riguardano samario, gadolinio, terbio, disprosio, lantanio, scandio e ittrio.
L'azienda sta portando avanti diverse iniziative strategiche:
- Gestire un impianto dimostrativo commerciale RapidSX™ a Kingston, Ontario, sotto un contratto di 4 milioni di USD del Dipartimento della Difesa degli Stati Uniti
- Sviluppare il Louisiana Strategic Metals Complex (SMC) ad Alexandria
- Ottenuto un finanziamento di 4,28 milioni di USD dal governo canadese
- Firmato un LOI con lo Stato della Louisiana per un incentivo stimato di 15 milioni di USD
Questi sviluppi sono in linea con l'Ordine Esecutivo del Presidente Trump del 20 marzo 2025, che invoca il Defense Production Act per rafforzare la produzione mineraria domestica, concentrandosi in particolare sulla riduzione della dipendenza da fonti estere di elementi delle terre rare.
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF) aborda las nuevas restricciones de exportación de China sobre siete elementos clave de tierras raras que entrarán en vigor el 4 de abril de 2025. Las restricciones afectan al samario, gadolinio, terbio, disprosio, lutecio, escandio e itrio.
La empresa está avanzando en varias iniciativas estratégicas:
- Operar una Planta de Demostración Comercial RapidSX™ en Kingston, Ontario, bajo un contrato de 4 millones de USD del Departamento de Defensa de EE. UU.
- Desarrollar el Complejo de Metales Estratégicos de Louisiana (SMC) en Alexandria
- Asegurado un financiamiento de 4.28 millones de USD del Gobierno de Canadá
- Ejecutado un LOI con el Estado de Louisiana por aproximadamente 15 millones de USD en incentivos
Estos desarrollos están alineados con la Orden Ejecutiva del Presidente Trump del 20 de marzo de 2025, que invoca la Ley de Producción de Defensa para fortalecer la producción mineral nacional, centrándose especialmente en reducir la dependencia de fuentes extranjeras de elementos de tierras raras.
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF)는 2025년 4월 4일부터 시행되는 중국의 7개 주요 희토류 원소에 대한 새로운 수출 제한을 다룹니다. 이 제한은 사마륨, 가돌리늄, 테르븀, 디스프로슘, 루테튬, 스칸듐 및 이트륨에 영향을 미칩니다.
회사는 여러 전략적 이니셔티브를 추진하고 있습니다:
- 미국 국방부의 400만 달러 계약에 따라 온타리오주 킹스턴에 RapidSX™ 상업 시연 공장을 운영
- 알렉산드리아에 루이지애나 전략 금속 복합체(SMC) 개발
- 캐나다 정부로부터 428만 달러의 자금 확보
- 루이지애나 주와 약 1500만 달러의 인센티브에 대한 LOI 체결
이러한 개발은 2025년 3월 20일 트럼프 대통령의 행정명령과 일치하며, 이는 방위 생산법을 발동하여 국내 광물 생산을 강화하고 특히 외국 희토류 원소 공급원에 대한 의존도를 줄이는 데 중점을 두고 있습니다.
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF) aborde les nouvelles restrictions à l'exportation de la Chine sur sept éléments clés des terres rares, qui entreront en vigueur le 4 avril 2025. Les restrictions concernent le samarium, le gadolinium, le terbium, le dysprosium, le lutécium, le scandium et l'yttrium.
L'entreprise avance plusieurs initiatives stratégiques :
- Exploitation d'une usine de démonstration commerciale RapidSX™ à Kingston, Ontario, dans le cadre d'un contrat de 4 millions USD avec le ministère de la Défense des États-Unis
- Développement du Louisiana Strategic Metals Complex (SMC) à Alexandria
- Obtention d'un financement de 4,28 millions USD du gouvernement canadien
- Signature d'un LOI avec l'État de Louisiane pour des incitations estimées à 15 millions USD
Ces développements s'alignent sur le décret exécutif du président Trump du 20 mars 2025, invoquant la Defense Production Act pour renforcer la production minérale nationale, en se concentrant particulièrement sur la réduction de la dépendance aux sources étrangères d'éléments des terres rares.
Ucore Rare Metals (TSXV: UCU) (OTCQX: UURAF) behandelt Chinas neu angekündigte Exportbeschränkungen für sieben wichtige Seltene-Erden-Elemente, die am 4. April 2025 in Kraft treten. Die Beschränkungen betreffen Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium und Yttrium.
Das Unternehmen verfolgt mehrere strategische Initiativen:
- Betrieb einer RapidSX™-Kommerziellen Demonstrationsanlage in Kingston, Ontario, unter einem Vertrag über 4 Millionen USD mit dem US-Verteidigungsministerium
- Entwicklung des Louisiana Strategic Metals Complex (SMC) in Alexandria
- 4,28 Millionen USD Finanzierung von der kanadischen Regierung gesichert
- LOI mit dem Bundesstaat Louisiana für geschätzte 15 Millionen USD an Anreizen unterzeichnet
Diese Entwicklungen stehen im Einklang mit dem Exekutivbefehl von Präsident Trump vom 20. März 2025, der das Defense Production Act in Anspruch nimmt, um die inländische Mineralproduktion zu stärken, insbesondere mit dem Fokus auf die Verringerung der Abhängigkeit von ausländischen Quellen seltener Erden.
- Secured USD$4 million contract with US Department of Defense
- Received $4.28 million funding from Canadian government
- Potential USD$15 million in state incentives from Louisiana
- Strategic positioning amid China's export restrictions
- Support from Defense Production Act executive order
- Demonstration plant still in testing phase, not full commercial production
- Louisiana SMC facility still in development phase
- LOI with Louisiana State is non-binding
Halifax, Nova Scotia--(Newsfile Corp. - April 4, 2025) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company"), acknowledges the recent joint announcement by China's Ministry of Commerce and the General Administration of Customs regarding export restrictions on critical rare earth elements effective April 4, 2025.
As reported by multiple news sources, the export restrictions, applicable to all countries, include seven key medium and heavy rare earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.
China's decision to implement these export controls underscores the critical importance of establishing a secure and independent rare earth supply chain in North America. Ucore remains steadfast in its commitment to mitigating supply chain vulnerabilities through the development and commercialization of its proprietary RapidSX™ rare earth element refining technology.
Ucore's Strategic Initiatives:
- U.S. Department of Defense Collaboration: Ucore is currently processing heavy rare earth elements at its RapidSX™ Commercial Demonstration Plant (the "Demonstration Plant") further to its USD
$4 million contract with the US Department of Defense. The Demonstration Plant was constructed in Kingston, Ontario for the purpose of demonstrating the RapidSX™ technology at commercial scale. - Louisiana Strategic Metals Complex (SMC): Ucore is progressing with the development of the Louisiana SMC in Alexandria, Louisiana. This facility is being designed to process broad both heavy and light mixed rare earth chemical concentrates, thereby reducing North America's reliance on foreign sources.
- Government Support: Ucore has additionally secured a
$4.28 million funding agreement from the Government of Canada to demonstrate the commercial efficacy of the RapidSX™ technology. This funding supports the production of high-purity rare earth elements from Canadian and U.S. feedstock sources. In addition to federal government support, the Company has executed a non-binding Letter of Intent with the State of Louisiana with respect to State grants, tax incentives, payroll rebates and other incentives with an estimated value of USD$15 million .
On March 20, 2025, President Trump invoked wartime powers under the Defense Production Act to address threats to America's national and economic security as a result of reliance on "hostile foreign powers' mineral production" (see Ucore Press Ucore Applauds White House Executive Action to Strengthen Critical Mineral Production - Ucore Rare Metals Inc.). The Executive Order outlines a number of initiatives to "facilitate domestic mineral production to the maximum extent possible" and is aimed at the production of a number of critical minerals, including rare earth elements. Ucore looks forward to continuing its work the US Department of Defense in developing a North American supply chain for these critical materials.
Pat Ryan, P.Eng., Chairman and CEO of Ucore, stated: "China's recent announcement highlights the urgent need for a robust and independent rare earth supply chain in North America. Ucore's RapidSX™ technology offers a transformative solution to this challenge, and we are committed to advancing our strategic initiatives to ensure a stable and secure supply of critical rare earth elements."
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About Ucore Rare Metals Inc.
Ucore is focused on rare- and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore's vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.
Through strategic partnerships, this plan includes disrupting the People's Republic of China's control of the North American REE supply chain through the near-term establishment of a heavy and light rare-earth processing facility in the U.S. State of Louisiana, subsequent Strategic Metal Complexes in Canada and Alaska and the longer-term development of Ucore's
Ucore is listed on the TSXV under the trading symbol "UCU" and in the United States on the OTC Markets' OTCQX® Best Market under the ticker symbol "UURAF."
For further information, please visit www.ucore.com.
Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements." All statements in this release (other than statements of historical facts) that address future business development, technological development and/or acquisition activities (including any related required financings), timelines, events, or developments that the Company is pursuing are forward-looking statements. The details of the legislation by which tariffs are implemented can potentially impact the effectiveness of the protections afforded by Foreign Trade Zones. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance or results, and actual results or developments may differ materially from those in forward-looking statements.
Regarding any disclosure in the press release above about the US Department of Defense or the Government of Canada Programs and the expected successful progress and resulting milestone payments from these Programs, the Company has assumed that the Programs (including each of their milestones) will be completed satisfactorily. For additional risks and uncertainties regarding the Company, the CDF, the Demo Plant and ongoing Programs (generally), see the risk disclosure in the Company's MD&A for Q3-2023 (filed on SEDAR on November 20, 2023) (www.sedarplus.ca) as well as the risks described below.
Regarding the disclosure above in the "About Ucore Rare Metals Inc." section, the Company has assumed that it will be able to procure or retain additional partners and/or suppliers, in addition to Innovation Metals Corp. ("IMC"), as suppliers for Ucore's expected future Strategic Metals Complexes ("SMCs"). Ucore has also assumed that sufficient external funding will be found to complete the Demo Plant demonstration schedule and also later prepare a new National Instrument 43-101 ("NI 43-101") technical report that demonstrates that the Bokan Mountain Rare Earth Element project ("Bokan") is feasible and economically viable for the production of both REE and co-product metals and the then prevailing market prices based upon assumed customer offtake agreements. Ucore has also assumed that sufficient external funding will be secured to continue the development of the specific engineering plans for the SMCs and their construction. Factors that could cause actual results to differ materially from those in forward-looking statements include, without limitation: IMC failing to protect its intellectual property rights in RapidSX™; RapidSX™ failing to demonstrate commercial viability in large commercial-scale applications; Ucore not being able to procure additional key partners or suppliers for the SMCs; Ucore not being able to raise sufficient funds to fund the specific design and construction of the SMCs and/or the continued development of RapidSX™; adverse capital-market conditions; unexpected due-diligence findings; the emergence of alternative superior metallurgy and metal-separation technologies; the inability of Ucore and/or IMC to retain its key staff members; a change in the legislation in Louisiana or Alaska and/or in the support expressed by the Alaska Industrial Development and Export Authority ("AIDEA") regarding the development of Bokan; the availability and procurement of any required interim and/or long-term financing that may be required; and general economic, market or business conditions.
Neither the TSXV nor its Regulation Services Provider (as that term is defined by the TSXV) accept responsibility for the adequacy or accuracy of this release.
CONTACTS
Mr. Michael Schrider, P.E., Ucore Vice President and Chief Operating Officer, is responsible for the content of this news release and may be contacted at 1.902.482.5214.
For additional information, please contact:
Mark MacDonald
Vice President, Investor Relations
Ucore Rare Metals Inc.
1.902.482.5214
mark@ucore.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/247345