Ucore Announces $60 Million Bought Deal Public Offering of Common Shares

Ucore Rare Metals Inc. announced a bought-deal public offering of 21,430,000 common shares at C$2.80 per share, generating gross proceeds of C$60,004,000. The transaction includes a cornerstone investment from a leading global institutional investor. Underwriters Red Cloud Securities Inc. and B. Riley Securities, Inc. hold a 15% over-allotment option for up to approximately 3,214,500 additional shares.

Net proceeds from the offering are designated for the development of the Louisiana Strategic Metals Complex (SMC), working capital, and general corporate purposes. The company expects the offering to close on or about August 13, 2026, subject to TSX Venture Exchange approval and customary conditions. The offering is filed via a prospectus supplement to the company's final short form base shelf prospectus dated June 30, 2026.

Ucore Rare Metals Inc. (UCU) raised C$60 million in equity to address its stated CAPEX requirement of US$135 million for Machine A and Production Line 1 at the Louisiana SMC, as well as ongoing working capital needs. The offering is dilutive, increasing the share count by approximately 18.4% (from ~116.4M to ~137.8M shares). The C$2.80 issue price represents a discount to the recent market trading range (C$3.44 on Aug 5), which is standard for bought deals but typically triggers short-term selling pressure.

This financing aligns with management's prior guidance that additional capital would be required within two years to execute the strategic plan. It is an expected, incremental step rather than a structural shift in the company's trajectory. The presence of a cornerstone institutional investor provides some validation of the project's fundamentals, but the raised capital extends the runway rather than eliminating future financing needs. Given the pre-revenue status and ~C$5M quarterly burn rate, the company will likely require further capital injections before commercial production in H1 2027. The news is routine for a development-stage critical minerals company advancing a government-backed refinery. It mitigates near-term liquidity risk but does not alter the execution timeline or technology validation status.

Ucore Rare Metals Inc. (UCU) is a Canadian critical minerals company focused on disrupting the Chinese-dominated rare earth supply chain by developing Western-aligned processing facilities. Its flagship project is the Louisiana Strategic Metals Complex (SMC) in Alexandria, LA. The optimized design features Enhanced Machine A plus three RapidSX™ Production Lines, targeting approximately 9,600 tonnes per annum of total rare earth oxides (TREO) capacity.

The company utilizes a proprietary RapidSX™ solvent extraction platform, which has been validated over 5,700+ hours at the Kingston, Ontario Commercialization and Demonstration Facility (CDF). Ucore claims this technology offers 2-4 times faster throughput, 34% lower capital expenditures (CAPEX), and a 70% smaller footprint compared to conventional solvent extraction methods.

Secondary assets include the Bokan-Dotson Ridge Rare Earth Project in Alaska, which is focused on heavy rare earth elements (REE), and the Kingston CDF, which is dedicated to Samarium and Gadolinium production. The company targets mid and heavy rare earths critical for defense, electric vehicles (EVs), and renewable energy, leveraging US and Canadian government funding and export control tailwinds.