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Ucore Rare Metals Inc
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Shares Issued 284,129,859
Close 2019-10-09 C$ 0.12
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Ucore pleased with court decision re: IBC acquisition

2019-10-09 12:06 ET - News Release

Mr. Jim McKenzie reports


Ucore Rare Metals Inc. has provided an update on the legal proceedings in Nova Scotia, commenced on Dec. 11, 2018, involving the prospective acquisition of IBC Advanced Technologies Inc. and, specifically, the enforceability of the option to purchase agreement (OTP) and defamatory public comments made by IBC and Steven R. Izatt.

On April 23, 2019, Ucore successfully opposed IBC's motion challenging the Nova Scotia courts' jurisdiction over the parties' disputes. On June 19, 2019, IBC's appeal of that decision was heard by the Nova Scotia Court of Appeal (NSCA). On Oct. 9, 2019, the NSCA issued a decision dismissing IBC's appeal and confirming: (i) that IBC had, by its actions, submitted to have the amended claims heard in Nova Scotia; and (ii) that there is no other, more appropriate, forum for the parties' litigation for the amended claims. Additionally, Ucore was awarded its costs on the appeal to be paid by IBC.

"This appeal decision is a yet another court ruling in favour of Ucore on our unchanging path towards the acquisition of IBC," commented Jim McKenzie, president and chief executive officer of Ucore. "IBC has sought to prevent the lawful execution of Ucore's right to exercise the option to purchase agreement of IBC. This appeal decision sets the stage to fully remedy that situation, and we are grateful to the Nova Scotia Supreme Court for the original decision, which determined that Nova Scotia is the most appropriate forum to determine the outcome of this critical question regarding the enforceability of the OTP, and to the Nova Scotia Court of Appeal for their affirmation of that decision."

"Today, the legal proceedings march ahead, based upon this appeal decision, with IBC having just 10 days to submit their defence and counterclaims against this amended action," commented Mike Schrider, chief operating officer of Ucore. "With the Nova Scotia trial venue now set, our legal advisers are working to pursue timely and complete resolution to this matter on behalf of the company. Our day-to-day attention continues to be on the advancement of the company's M3 plan of action, a comprehensive strategy to leverage the highest-grade, NI 43-101-compliant heavy rare earth (HREE) mineral resource on U.S. soil at Bokan Mountain, Alaska, against U.S. dependence upon China for these exceptional and crucially required strategic metals."

Appeal decision conclusion and summary of contents

The following is a summary of the general findings of the appeal decision, "IBC Advanced Technologies, Inc. v. Ucore Rare Metals Inc.," 2019 NSCA 80:

  1. IBC and Mr. Izatt have clearly submitted to the jurisdiction of the Nova Scotia courts over the entirety of Ucore's pleaded claims.
  2. Ucore's claims have a presumptive, real and substantive connection to Nova Scotia.
  3. Had the Nova Scotia courts declined jurisdiction over Ucore's amended claims, as requested by IBC and Mr. Izatt, it would result in a multiplicity of proceedings that would not be an economical and/or efficient use of the courts' time.
  4. There was no evidence that a Utah court would be in a better position than a Nova Scotia court to apply the law of the OTP to the parties' disputes.
  5. There was similarly no evidentiary basis to suggest that a Nova Scotia judgment would not be enforceable against IBC and Mr. Izatt in Utah.

This appeal decision triggers the following action events resulting from the Aug. 2, 2019, court case management conference:

  1. IBC and Mr. Izatt must file their defence and any counterclaims by Oct. 21, 2019, which shall be followed by:
    1. Ucore's statement of defence to any counterclaims filed by IBC and Mr. Izatt;
    2. Commencement of the disclosure of documentation leading to examinations for discovery.
  2. The interlocutory injunction hearing will now proceed at 9:30 a.m. on Dec. 4, 2019.

Decisions of the NSCA and the court may be accessed from its website, as they are posted by the courts. More information on the Nova Scotia proceedings can be obtained in person at the law courts, 1815 Upper Water St., Halifax, N.S. More information on the Nova Scotia and other proceedings, generally, can be obtained under the company's profile on SEDAR or by contacting Mark MacDonald, vice-president of business development, at 902-482-5214 or info@ucore.com.

About Ucore Rare Metals Inc.

Ucore Rare Metals is a development-phase company that is focused on rare and critical metal resources, extraction and beneficiation technologies with near-term potential for production, growth and scalability.

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