NioCorp Developments Ltd. (TSX: NB) (OTCQX: NIOBF) is pleased to announce that it has expanded its existing non-revolving credit facility between the Company and its Executive Chairman, Mark Smith, to US$2.5 million from the previous limit of US$2 million.
Funds drawn on the credit facility will assist the Company in continuing its work to secure project financing for the Elk Creek Project and move the project to a construction start.
The credit facility bears 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 June 16, 2020.
“On behalf of the NioCorp Board of Directors, I want to express my appreciation to Mark for his continuing support of the Company and its efforts to move the Elk Creek Superalloy Materials Project to commercial reality,” said Joseph A. Carrabba, Lead Director of NioCorp’s Board. “This credit facility demonstrates his deep dedication to NioCorp’s success.”
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. 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.
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 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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