Ucore Secures Additional US$4.6 Million from U.S. Department of War to Advance Samarium and Gadolinium Refining
Ucore secures more U.S. defense funding and combines it with fresh equity capital to advance its Louisiana rare earth separation complex.
Rhea-AI Summary
Ucore Rare Metals (UURAF) received an additional US$4.6 million Other Transaction Agreement modification from the U.S. Department of War to expand its RapidSX rare earth separation program.
The new award raises Phase 2 funding of Ucore's Rare Earth Separation Technology Capabilities Prototype Project from US$18.4 million to US$23.0 million, and total OTA grant funding with U.S. Army Contracting Command-Orlando to US$27.0 million, supporting samarium and gadolinium process development and deployment of Enhanced Machine A at the planned Louisiana Strategic Metals Complex in Alexandria. Ucore links this to growing U.S. focus on domestic samarium and gadolinium supply amid tightening Defense Federal Acquisition Regulation Supplement restrictions and Chinese export controls.
The company highlights recent technical milestones and a separate public equity offering that raised approximately C$69 million for Louisiana SMC development, working capital, and general corporate purposes.
Positive
- US$4.6 million new OTA modification, lifting total OTA grant funding to US$27.0 million
- Phase 2 project funding increased from US$18.4 million to US$23.0 million
- Closed public offering with approximately C$69 million in gross proceeds
- Shipped NdPr oxide and 99.9% dysprosium oxide samples for customer qualification
Negative
- Approximately C$69 million equity financing implies share dilution for existing holders
AI-generated analysis. How Rhea-AI works. Not financial advice.
Expanded RapidSX™ program supports critical defense supply chains amid heightened interest from Washington
Ucore announces:
Additional US
$4.6 million Other Transaction Agreement ("OTA") for expanding the first RapidSX™ Enhanced Machine A in Louisiana, bringing the total OTA grant funding to US$27.0 million Expanding samarium and gadolinium process development in Kingston, for Enhanced Machine A deployment in Louisiana
Ucore reports heightened interest from Washington on Samarium and Gadolinium development.
Halifax, Nova Scotia--(Newsfile Corp. - September 14, 2026) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") is pleased to report the execution of a US
This latest award advances work on two materials that the U.S. government has identified as priorities for strengthening domestic critical mineral supply chains. Ucore is deploying separation capabilities intended to address those needs as sourcing requirements tighten.
"We are seeing heightened interest from Washington in the role Ucore can play in securing critical rare earth supplies," stated Pat Ryan, P.Eng., Chairman and CEO of Ucore. "We have optimized our commercial equipment configurations, strengthened our financial position, and now secured additional DoW funding for an expanded program. The dots are connecting around a clear national need: the ability to separate the materials that U.S. defense and industrial supply chains depend on."
A growing priority for defense supply chains
Sm is a key input for samarium-cobalt magnets used in demanding defense and aerospace applications where magnetic performance at high temperatures is essential. Gd has specialized coatings, electronics, and nuclear applications, including neutron absorption in nuclear reactors. Both were identified by the U.S. Geological Survey among the mineral commodities with the highest supply-chain risks in its 2025 assessment.
China's April 2025 export controls included samarium- and gadolinium-related metals, oxides, and compounds. In February 2026, the Defense Industrial Base Consortium ("DIBC") issued a U.S. government request for projects addressing domestic production gaps across 13 critical minerals, including both Sm and Gd. Separation and processing were among the capabilities specifically sought.
The procurement requirements are also tightening. Effective January 1, 2027, applicable Defense Federal Acquisition Regulation Supplement ("DFARS") restrictions for samarium-cobalt and neodymium-iron-boron magnets extend across their upstream supply chains, including mining, refining, and separation in covered countries such as China, subject to specified exceptions and nonavailability determinations. Ucore believes these requirements increase the importance of qualifying dependable processing sources outside covered countries.
Ucore's role is at the separation stage, where mixed rare earth feedstocks must be divided into individual rare earth oxide products suitable for industrial use or further downstream processing. Building that capability is a necessary part of connecting mineral supply with oxide, metal, alloy and/or magnet manufacturing.
Additional funding advances the next stage
The new award increases funding for Phase 2 of Ucore's Rare Earth Separation Technology Capabilities Prototype Project from US
Building Momentum Toward Commercial Deployment
The additional DoW support follows a series of advances across Ucore's commercialization program. In June, the Company shipped NdPr oxide qualification samples to major magnet manufacturers. In July, it announced production of
In August, Ucore completed its RapidSX™ contactor scale-up program following more than 400 optimization tests and closed a public offering raising approximately C
The expanded DoW program connects that technical progress and stronger financial position to a specific strategic need. Ucore is advancing the separation capabilities intended to turn reliable feedstock sources into a North American supply of the rare earth products manufacturers require.
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About Ucore Rare Metals Inc.
Ucore is focused on rare-earth 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, Ucore aims to support the development of a more diversified and resilient North American Rare Earth Elements ("REE") supply chain through the near-term development of a heavy and light rare-earth processing facility in the US State of Louisiana, subsequent SMCs 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 contains "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities laws. 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, including without limitation statements with respect to: the progress of development at the Louisiana SMC and any subsequent SMCs; and future development plans. 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.
For additional risks and uncertainties regarding the Company, its business activities, its ability to qualify for and receive any additional funding from any U.S. or Canadian government, the Company's Commercialization and Demonstration Facility ("CDF") and the aforementioned projects (generally), see the risk disclosure in the Base Shelf Prospectus and the Prospectus Supplement, and in the continuous disclosure documents filed by the Company on SEDAR+ (http://www.sedarplus.ca), including the Company's annual information form for the year ended December 31, 2025 (filed on SEDAR+ on June 8, 2026) and MD&A for Q2-2026 (filed on SEDAR+ on August 26, 2026), 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 SMCs. Ucore has also assumed that sufficient external funding will be found to continue and complete the ongoing research and development work required at the CDF and also later prepare a new technical report in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects that demonstrates that 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 and eventual commissioning and operations.
Forward-looking statements are based on a number of material assumptions, including, without limitation: the successful completion and accuracy of baseline, front-end-engineering design and detailed engineering studies; the ability to complete further engineering, procurement, and construction activities as currently contemplated; the availability, cost, and timely delivery of equipment, materials, utilities, labour and construction services; the Company's ability to secure sufficient financing on acceptable terms; the receipt and timing of all required permits and approvals; the successful scale-up and commercial deployment of RapidSX™ technology from demonstration to commercial operation; the availability of qualified feedstock from third-party suppliers; successful customer qualification and offtake discussions; continued support from governmental partners; and general economic, market, and industry conditions, including assumptions regarding rare earth oxide prices, which are subject to significant volatility.
Although the Company believes that the assumptions underlying the forward-looking information are reasonable, there can be no assurance that such assumptions will prove to be accurate or that the anticipated results, performance, or achievements will be realized. Actual results may differ materially from those expressed or implied by the forward-looking information. Factors that could cause actual results to differ materially include, without limitation: risks associated with the development, scale-up, and commercialization of new or unproven technologies; the risk that RapidSX™ may not perform at commercial scale as expected; engineering design changes; inaccuracies in capital or operating cost estimates; cost escalation due to inflation, supply chain disruption, or market conditions; delays or failures in procurement, construction, or commissioning; the inability to obtain or maintain required permits, approvals, or regulatory authorizations; challenges in securing adequate financing; adverse capital market conditions; variability in feedstock supply, quality, or pricing; failure to secure or maintain commercial relationships, customer qualification, or offtake arrangements; fluctuations and uncertainty in rare earth oxide prices and demand; the risk that indicative or quoted market prices, including for ex-China markets, may not be realized; operational risks once in production, including equipment failures or lower-than-expected recoveries; geopolitical risk; changes in applicable laws or regulations; environmental or permitting challenges; loss of key personnel; and general economic, business, or competitive 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
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/314172
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