NioCorp Developments Ltd. has reached an agreement on the major commercial terms of a convertible security investment with a New York-based institutional fund manager of up to USD 10.5M in NioCorp. Finalization of the Investment remains subject to the investor’s final due diligence review, approval by investor’s investment committee, TSX approval, and finalization of a security package for the Investment.
“We are very pleased to be nearing finalization on this financing package with a sophisticated institutional investor,” said Mark A. Smith, NioCorp’s Executive Chairman. “We look forward to shortly announcing full details of this financing and to continuing to progress toward completion of a bankable feasibility study for our Elk Creek, Nebraska niobium / scandium / titanium project.”
The project is expected to produce 7,490 tonnes per annum (tpa) of Ferroniobium, 97 tpa of Scandium Trioxide and 23,960 tpa of Titanium Dioxide over a 32-year operating life, according to the October 2015 PEA. Niobium is a crucial component in high strength, low-alloy (“HSLA”) steels for bridges and buildings, high pressure oil and gas pipelines, lightweight and fuel efficient cars and is also used in the manufacture of stainless steel, MRI machines, wind turbines and jet engines.