CENTENNIAL, Colo., June 10, 2020 /CNW/ -- NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX: NB; OTCQX: NIOBF) is pleased to announce that it has increased its existing non-revolving credit facility (the "credit facility") with its CEO and Executive Chairman, Mark A. Smith, to
US$3.5 million, from the previous limit of US$3.0 million, and has extended the maturity date for loans made under the credit facility to December 15, 2020, from the previous maturity date of June 16, 2020.
In conjunction with the extension of the maturity date of the credit facility, Mr. Smith agreed to extend the maturity date to December 15, 2020, of an existing $1 million loan to the Company that was initiated in June 2015.
Funds drawn on the credit facility will assist the Company in continuing its work to secure project financing for the Elk Creek Project (the "Project") and move the Project to a construction start once project financing is secured.
"I am pleased to report that while the COVID-19 pandemic temporarily halted processes in some areas of our project finance effort, progress has once again resumed," said Mr. Smith. "There can be no guarantee of success in any of the financing tracks we are currently pursuing, but we believe that our continuing success in further de-risking the Project has been very helpful to the process."
The credit facility bears an interest rate of 10%, is secured by the Company's assets pursuant to a general security agreement and is subject to a 2.5% establishment fee. Mr. Smith's 2015 loan is structured under those same terms.
The credit facility is subject to Toronto Stock Exchange approval and is a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Because the value of the credit facility is less than 25% of NioCorp's market capitalization, it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
NioCorp $NB $NIOBF #Niobium #Scandium #ElkCreek #MarkSmith
For More Information
Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, firstname.lastname@example.org
NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium also is a critical component of advanced solid oxide fuel cells. Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this document may constitute forward-looking statements, including statements regarding the Company's ability to secure project financing for the Elk Creek Project and move the project to a construction start and the Company's belief that its continuing success in further de-risking the Project has been very helpful to the process. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp's plans or prospects to change include risks related to the Company's ability to operate as a going concern; risks related to the Company's requirement of significant additional capital; changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes in economic valuations of the Project, such as Net Present Value calculations, changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business and the risks set forth in the Company's filings with Canadian securities regulators at www.sedar.com and the SEC at www.sec.gov. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE NioCorp Developments Ltd.