IBC Alleges Ucore's Insolvency Constituted Default of the Option Agreement - Requests Summary Judgment Declaring Option Agreement to be Invalid and Unenforceable
AMERICAN FORK, Utah, March 11, 2020 /CNW/ -- IBC Advanced Technologies, Inc. ("IBC") recently filed a Motion for Summary Judgment against Ucore Rare Metals Inc. ("Ucore") in the United States Federal District Court, District of Utah.
IBC is requesting the Federal Court to find the letter agreement, dated March 14, 2015, between Ucore Rare Metals, Inc. ("Ucore") and IBC, as amended and extended (the "Option Agreement") to be unenforceable by its terms as well as invalid based on Ucore's unrectified breaches, including insolvency.
The Option Agreement specifically lists insolvency as default of a material provision of the Option Agreement and grounds for termination. Mr. Gavin Harris, an independent forensic accountant, determined that Ucore was insolvent as of the relevant date determined by IBC's Notice of Default which was issued pursuant to the Option Agreement.
Supporting Mr. Harris' assessment are findings regarding the principal asset listed by Ucore, the Bokan Mountain rare earth element deposit in Alaska ("Bokan Mine"), made by independent mineral economics expert Dr. David R. Hammond (Hammond International Group). Dr. Hammond conducted an update of the economic value indicators represented by Ucore in its March 13, 2013 Preliminary Economic Assessment ("PEA"). His findings are encapsulated in a sworn declaration, including the following:
- The current enterprise value of the Bokan Mine operation is zero; the 2019 evaluation shows a pre-tax, current dollar Net Present Value for the project at a 10% nominal discount rate of negative $897 million, with a projected Life of Mine net cash flow of negative $1.582 billion, on a pre-tax, nominal dollar value basis.
- Based on his understanding and assessment of global rare earth element ("REE") markets and the likely future supply/demand situation (inclusive of present political and trade conditions), Dr. Hammond's opinion is that the Bokan Mine project is highly unlikely to find an opportunity for competitive market entry during the next 30 to 40 years.
Mr. Harris' and Dr. Hammond's sworn declarations can be accessed at:
Ucore has not publicly disputed either Mr. Harris' or Dr. Hammond's sworn declarations.
Background of IBC
IBC is an award-winning provider of proprietary and innovative Molecular Recognition Technology ("MRT") products and processes, based on green chemistry and green engineering, to premier customers worldwide. IBC's SuperLig®, AnaLig® and MacroLig® products and associated processes are used in manufacturing, analytical and laboratory applications.
In 1988, IBC was founded by and named after three Brigham Young University professors: Dr. Reed M. Izatt, Dr. Jerald S. Bradshaw and Dr. James J. Christensen.
IBC is the proud sponsor of the International Izatt-Christensen Award. This Award, founded in 1991 and named after Dr. Reed M. Izatt and Dr. James J. Christensen, two of the founders of IBC, recognizes excellence in macrocyclic and supramolecular chemistry. It is known as one of the most prestigious small awards in chemistry. The Award is presented annually at the International Symposium on Macrocyclic and Supramolecular Chemistry ("ISMSC"). Two of the early recipients of the Award later shared the 2016 Nobel Prize in Chemistry. The precursor of the ISMSC was founded by Dr. Izatt and Dr. Christensen in 1977.
A privately-held Utah corporation, IBC counts among its shareholders a multi-billion dollar international manufacturing company, which has been a major customer and benefactor of IBC for over thirty (30) years. IBC has built its business upon integrity, trust and excellence and values its close association with such top-tier companies.
IBC provides proprietary, green chemistry and green engineering SuperLig® Molecular Recognition Technology products and processes worldwide. More information can be found at www.ibcmrt.com
SOURCE IBC Advanced Technologies, Inc.
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