NioCorp Arranges USD $1.5 Million Loan
June 18, 2015 (Source: Marketwired) — Engages Sagent Advisors LLC as Financial Advisor
NOT FOR DISSEMINATION IN THE UNITED STATES
NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB)(OTCQX:NIOBF)(FRANKFURT:BR3), is pleased to announce that the Company has arranged a loan agreement dated June 17, 2015 in the amount of USD $1.5 million from Mark A. Smith, Executive Chairman of NioCorp, which will serve to further improve and refine the Elk Creek Niobium Project. These funds will contribute to work done on the Preliminary Economic Study (PEA), additional hydrological testing of the planned mine site, and additional hydrometallurgical work necessary to keep the project on its original timeline for completion of the Company’s Feasibility Study. The one year term loan will bear an interest rate of 10%, is secured by the Company’s assets pursuant to a concurrently executed general security agreement, and is subject to both a 2.5% establishment fee and 2.5% prepayment fee.
“NioCorp’s Board of Directors would like to thank Mr. Smith for his continued support of the Company’s mission and the Elk Creek Niobium Project,” said Joseph A. Carrabba, Lead Director of NioCorp’s Board. “This loan, in addition to his recent acquisition of NioCorp common shares, is representative of his dedication and commitment to the success of this project and the Company.”
The loan 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 loan 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. The material change report in relation to the loan will be filed less than 21 days before the expected closing date as the Company wishes to complete the loan as soon as commercially practical after all required approvals are obtained.
In addition, the Company has appointed Sagent Advisors LLC (“Sagent”) of New York, NY to provide financial advisory services. Sagent is a leading independent investment bank focused on providing strategic and financial advice and provides broad industry and execution expertise. Sagent has significant experience in the mining sector including acquisitions, mergers, divestitures and corporate finance.
“We are pleased to have engaged with Sagent Advisors, a leading investment bank with highly regarded expertise in the mining sector, to assist NioCorp,” said Mr. Smith.
NioCorp is a mineral development company pursuing high-quality natural resources. The Company’s main focus is the Elk Creek Niobium Project, which is an advanced niobium exploration initiative located in southeast Nebraska. This resource is used to produce High Strength, Low Alloy (“HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications.
Special note about forward-looking statements:
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release may constitute forward-looking statements. Such forward-looking statements are based upon NioCorp’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. 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 changes in demand for and price of commodities (such as fuel and electricity) and currencies; 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 labour 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. 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. Readers are advised that the Elk Creek PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral Resources are not Mineral Reserves because they do not have demonstrated economic viability. There is no guarantee that Inferred Mineral Resources will be converted to the Measured and Indicated Mineral Resource categories and, therefore, there is no guarantee that the project economics described herein will be achieved.
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