NioCorp Meets Conditions on Archie Lake Option, Special Warrant Commitments Surpass $10,000,000
November 3, 2014 (Source: Marketwired) — NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
NioCorp Developments Ltd. (“NioCorp” or the “Company“) (TSX VENTURE:NB)(OTCQX:NIOBF)(FRANKFURT:BR3) is pleased to provide the following update concerning the option agreement (the “Option Agreement“) with Alberta Star Development Corp. (“Alberta Star“) on the Company’s 100% owned Archie Lake property (the “Property“).
As part and parcel to the Option, Alberta Star will subscribe for $1,540,000 in the Company’s current private placement financing of Special Warrants (the “Offering“) to obtain 2.8 million Special Warrants, with the condition precedent (the “Threshold Precedent“) that the Company be in receipt of a minimum of $10,000,000 in subscriptions to the Offering (including that of Alberta Star). The Option, the Offering and the investment by Alberta Star in the Offering are all subject to final approval of the TSX Venture Exchange (the “TSXV“).
Update: NioCorp has been advised by Alberta Star that the TSXV has granted conditional acceptance for the Option, and for the participation of Alberta Star in the Offering. By return, NioCorp has advised Alberta Star that subject to the receipt of Alberta Star’s subscription, the Threshold Precedent has been met as Niocorp has received (exclusive of Alberta Star’s subscription) in excess of $8,500,000 in subscriptions for the Offering, for a total in excess of $10,000,000. Furthermore NioCorp advises that preliminary approval of the Offering has been received from the TSXV. Satisfaction of these conditions allows for finalization of the Option and the Offering participation.
Details of the Offering, as well as the Option with Alberta Star are contained in the news release dated October 27, 2014. The Company anticipates both the Offering and the Option will be submitted to the TSXV for final approval shortly. Niocorp advises that it intends to close the Offering on a partially brokered and partially non brokered basis, and that there will be no commission on Alberta Star’s and certain other subscriptions to the Offering.
About NioCorp: NioCorp is developing the only primary niobium deposit known to be under development in the U.S., and the highest grade undeveloped niobium deposit in North America, located near Elk Creek, Nebraska. The Company has filed an NI 43-101 compliant resource report, available on SEDAR, and is in the process of filing an updated NI 43-101 compliant resource estimate 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.
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ON BEHALF OF THE BOARD
Peter Dickie, Director, President and Corporate Secretary
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. Except as required by law, 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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