Ucore wins favorable decision in court battle with acquisition target IBC
Ucore Rare Metals (TSXV: UCU) has received a favorable decision from the Nova Scotia Court of Appeal (NSCA) over its ongoing legal dispute with IBC Advanced Technologies, the company announced Wednesday.
Legal proceedings in Nova Scotia began in December involving Ucore’s prospective acquisition of IBC, specifically the enforceability of the option to purchase agreement (OTP) and defamatory public comments made by IBC and its CEO Steven Izatt.
On April 23, Ucore successfully opposed IBC’s motion challenging the Nova Scotia courts’ jurisdiction over the disputes. Then on June 19, IBC’s appeal of that decision was heard by the NSCA.
On Wednesday, the NSCA issued a decision dismissing IBC’s appeal and confirming that IBC had, by its actions, submitted to have the amended claims heard in Nova Scotia, and 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.
IBC has 10 days to submit its defence and counterclaims against the amended action.
The appeal decision by the NSCA counts as another court ruling in favor of Ucore on its unchanging path towards the acquisition of IBC, said the Nova Scotia-based rare earths miner.
The parties have also been engaged in legal battles in the state of Utah, where IBC claims to have jurisdiction over specifics of its case against Ucore. The lawsuit filed by IBC earlier in January was recently dismissed by a Utah district court.
Ucore is currently focused on the development of its Bokan-Dotson Ridge rare earth project in Alaska, located on Prince of Wales Island — 60 km southwest of Ketchikan and 140 km northwest of Prince Rupert, BC. The property is claimed to be the highest-grade heavy rare earth project within the US, containing dysprosium, terbium and yttrium.
On Wednesday afternoon, Ucore’s stock had dropped over 13%. Its shares had been traded over 2.1 million times, while the average daily volume is 145,904. The company has a C$35.5 million market capitalization.