Ucore Receives Conditional Approval from the Government of Canada for up to $36.3M for Canadian Rare Earth Processing

On October 31, 2025, Ucore Rare Metals Inc., after a trading halt, announced two significant developments. First, it has entered into a non-binding Heads of Agreement (HoA) with Wyloo Gascoyne Pty. Ltd. and Hastings Technology Metals Ltd. to secure a long-term supply of rare earth concentrate from the Yangibana project in Western Australia for its Louisiana facility. Second, and more significantly, Ucore has received conditional approval from the Government of Canada for up to C$36.3 million in funding for a new Canadian rare earth processing facility in Ontario. This funding package includes a C$26.3 million non-repayable contribution from Natural Resources Canada and C$10 million from the Federal Economic Development Agency for Southern Ontario.

The combined news is a game-changer for Ucore. The conditional Canadian government funding is a massive non-dilutive capital injection that validates the company's technology and strategic importance. It not only provides the capital to launch a second major processing facility but also diversifies the company's operational footprint into Canada, targeting specific rare earths (Samarium, Gadolinium) that are subject to Chinese export controls. This effectively doubles the company's strategic scope.

Simultaneously, the HoA with Wyloo and Hastings for feedstock from the advanced Yangibana project represents a major de-risking event for the company's flagship Louisiana Strategic Metals Complex (SMC). A critical risk for any aspiring processor is securing reliable, long-term feedstock. This agreement, combined with the previous LOI with Critical Metals Corp. for feedstock from the Tanbreez project, demonstrates tangible progress in building a diversified and robust supply chain from allied nations.

While incredibly positive, the critical takeaway is the conditional nature of these agreements. The C$36.3M in funding is subject to meeting all program conditions and executing a final Contribution Agreement. The feedstock agreement is a non-binding HoA. The market is likely to price in these developments as completed, but significant execution risk remains. The company must successfully convert these preliminary agreements into definitive, binding contracts to fully realize the value. Failure to do so would be a major setback. Despite this risk, securing such substantial government backing and a second major feedstock partner fundamentally alters the company's trajectory and potential.

Ucore Rare Metals Inc. is an advanced technology company focused on rare earth element (REE) separation and purification. Its primary strategy is to establish a secure, North American-based REE supply chain, independent of China.

The company's flagship project is the Louisiana Strategic Metals Complex (SMC), an 80,800 sq. ft. commercial REE processing facility being developed in Alexandria, Louisiana. The SMC will utilize Ucore's proprietary RapidSX™ technology to separate mixed REE concentrates into high-purity, individual rare earth oxides for magnet manufacturing and other critical applications. This project is significantly de-risked by US$22.4 million in non-repayable funding from the U.S. Department of Defense. The most recent news adds a second major project: a C$36.3 million (conditionally funded) processing facility in Ontario, Canada. The company also holds the Bokan-Dotson Ridge heavy REE exploration project in Alaska, which represents a potential long-term, vertically integrated feedstock source.