Commerce and Ucore: The Beginning of a Beautiful Friendship?
​On Monday, Ucore Rare Metals Inc. (TSX.V: UCU) signed a MOU with Commerce Resources Corp. (TSX.V: CCE) for the purpose of integrating feedstock from Commerce‘s Ashram Project with Ucore‘s recently announced rare earth separation facility and strategic metals complex (SMC) in Utah, USA.
Currently at $75 million CAD, Ucore enjoys one of the largest market capitalizations in the rare earth space, also due to being a development-phase company focused on beneficiation technologies with near-term potential for production. Ucore also owns one of the highest grade heavy rare earth projects within the US, the Bokan-Dotsan Ridge Deposit in Alaska, which, however, only has a limited mine life of about 11 years. The Ashram Deposit, on the other hand, has a very large tonnage, plus a simple mineralogy. Both Ucore and Commerce could soon turn out as perfect partners for the purpose of producing rare earths on US soil.California Republican Duncan Hunter recently (March 7, 2017) introduced a bill before Congress that seeks to address the supply side imbalance, whereby the US is currently completely dependent upon a foreign source that would not be considered an ally – China – for the REEs it so desperately needs to manufacture weapons and weapons systems. “The U.S. must no longer be wholly dependent on foreign sources of strategic and critical materials,†said Rep. Hunter. “The risk of this dependence on national security is too great and it urgently demands that we re-establish our depleted domestic industrial base.“
Commerce Resources is engaged in the business of acquiring, exploring, developing and evaluating mineral resource properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. Co. is in the exploration stage and has interests in properties located in British Columbia and Quebec, Canada. The recoverability of amounts shown for resource properties is dependent upon the discovery of economically recoverable reserves, continuation of Co.'s interest in the underlying mineral claims, the ability of Co. to obtain financing to complete their development, and future profitable production or disposition thereof.
Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development and production of resource deposits as well as marcoeconomic analysis of commodity and currency markets. Our international team of five analysts bring our German and English speaking readership a wealth of experience from the commodity markets: Stephan Bogner (mining analyst), John P. Barry (professional geologist), Chris Berry (macroeconomist), Prof. Dr. Hans Bocker (award-winning book author), and Boris Gerjovic (fundamental analyst).
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