NioCorp Enters Into Sponsorship Agreement with Mackie Research Capital Corporation
December 4, 2014 (Source: Marketwired) — NioCorp Developments Ltd. (“NioCorp” or the “Company“) (TSX VENTURE:NB) (OTCQX:NIOBF) (FRANKFURT:BR3) is pleased to announce that it has entered into a sponsorship agreement with Mackie Research Capital Corporation (“MRCC“) and will retain MRCC to provide strategic advice on several initiatives being analyzed by the Company.
NioCorp has entered into a sponsorship agreement with MRCC, as the Company is exploring the option of listing its securities on a more senior North America stock exchange. In consideration for its sponsorship services, MRCC will be paid a cash fee and issued 250,000 non-transferable compensation options (the “Compensation Options“). Each Compensation Option shall entitle MRCC to purchase a Unit at a price of $.60 per Unit. Each Unit will consist of one Common Share and one Warrant. Each Warrant will entitle MRCC to acquire one Warrant Share at a price of $.65 per Warrant Share for a period of 2 years from the date MRCC delivers its sponsorship report. There is no assurance that the Company meets the listing requirements of any senior exchange at this time.
The Company has also amended the terms of its financial services advisory agreement (the “Advisory Agreement“) with MRCC (previously announced in news releases dated July 31 and November 10, 2014). Under the revised terms of the Advisory Agreement, the Company reduced the number of broker warrants from one million broker warrants to 750,000 broker warrants (the “Broker Warrants“), of which 500,000 Broker Warrants will be issued upon TSX Venture Exchange acceptance and 250,000 Broker Warrants will be issued on the date the Company obtains a receipt from the British Columbia Securities Commission (as principal regulator) for a final short form prospectus pursuant to National Policy 11-202 and Multilateral Instrument 11-102. The Broker Warrants are exercisable into Units, having the same terms as the Units issued under the Company’s recent private placement offering.
“We believe that the Company is at a stage where it requires greater exposure, and are considering strategic plans to achieve that goal. The Company recently published an updated resource estimate for our Elk Creek deposit, completed a $10,585,197 private placement and recently hired an in-house investor relations officer. As we continue to rapidly develop the Elk Creek Niobium deposit, we hope to generate a greater investor interest in our story, and consequently analyst coverage, greater liquidity for our shareholders and capital raising ability for the Company. MRCC agrees with our near term strategic plans and we are excited to have them on board.” stated Mark Smith, CEO of NioCorp.
About the Company:
NioCorp is developing the only primary niobium deposit known to be under development in the United States, and the highest grade undeveloped niobium deposit in North America, located near Elk Creek, Nebraska. The Company has filed an updated NI43-101 compliant resource report, available on SEDAR, reporting an Indicated resource of 28.2 Million Tonnes grading 0.63% Nb2O5, containing 177 Million Kg’s of Nb2O5, and an Inferred resource of 132.8 Million Tonnes grading 0.55% Nb2O5, containing 733.7 Million Kg’s of Nb2O5, (at a 0.3% Nb2O5 cutoff grade). Niobium is mainly used in the form of Ferro-Niobium to produce HSLA (High Strength, Low Alloy) steel, to produce lighter, stronger steel for use in automotive, structural and pipeline industries. The U.S. imports 100% of its niobium needs.
Peter Dickie, President, Corporate Secretary and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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.
This press release is not for distribution or dissemination in the United States and accordingly, shall not constitute an offer of securities in the United States. The securities that may be issued pursuant to this press release are not currently qualified by prospectus or registered under the U.S. Securities Act of 1933, as amended (the “Securities Act“), or the laws of any state, and may not be offered or sold in the United States, or to, or for the account or benefit of United States persons (as defined in Regulation S under the Securities Act) or persons in the United States absent registration or an applicable exemption from the registration requirements. The securities are subject to resale restrictions under applicable securities laws.
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