NioCorp Arranges a USD $2 Million Non-Revolving Credit Facility
January 20, 2017 (Source) — NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3), is pleased to announce that it has arranged a non-revolving credit facility agreement in the amount of USD $2 million between the Company and its Executive Chairman and Chief Executive Officer, Mark A. Smith. These funds will support ongoing working capital needs.
The credit facility will bear 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. The amounts outstanding under the credit facility will become due January 16, 2018. In connection with the establishment of the facility, NioCorp has drawn down an initial loan amount of USD $175,000.
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. The material change report in relation to the credit facility will be filed less than 21 days before the expected closing date as the Company wishes to complete the credit facility as soon as commercially practical after all required approvals are obtained.
On Behalf of the Company,
VP, External Affairs
Source: NioCorp Developments Ltd.
@NioCorp $NB $NIOBF $BR3 #Niobium #Scandium #ElkCreek
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.
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