NioCorp Completes Payments Under the $8 Million April 2024 Notes

Rhea-AI Summary

NioCorp Developments (NASDAQ:NB) has announced the complete satisfaction of all remaining obligations under its $8 million unsecured notes issued on April 12, 2024. The notes were originally issued to YA II PN, (Yorkville) and Lind Global Fund II LP, with the purchasers advancing $6.96 million to NioCorp in exchange for $8 million in notes and warrants to purchase up to 615,385 common shares.

With this final payment, NioCorp has cleared its balance sheet of all long-term debt. The company's CEO, Mark A. Smith, expressed satisfaction with the debt clearance and indicated that NioCorp will now focus on securing project financing for the construction of its Elk Creek Critical Minerals Project in Nebraska.

Positive

• Complete elimination of $8 million in long-term debt obligations
• Balance sheet improvement with removal of all long-term debt
• Company now positioned to focus on securing project financing

Negative

• Company still requires significant project financing for Elk Creek Project construction
• Previous note arrangement resulted in $1.04 million in additional debt obligation ($8M notes vs $6.96M received)
• Dilution impact from warrants for 615,385 common shares

Insights

Financial Analyst

The successful extinguishment of $8 million in notes by NioCorp marks a pivotal financial milestone that substantially strengthens the company's balance sheet position. This debt clearance is particularly significant given the original financing structure, where NioCorp received $6.96 million in funding while issuing $8 million in notes plus warrants for 615,385 common shares - a reflection of the financing costs typical for development-stage mining companies.

The elimination of this debt obligation brings three key strategic advantages:

• Enhanced financial flexibility for future project financing negotiations
• Improved debt-to-equity ratio, making the company more attractive to potential institutional investors
• Reduced ongoing interest expense burden, preserving cash for project development

The timing of this debt clearance is strategically important as NioCorp positions itself to secure project financing for the Elk Creek Critical Minerals Project. With a clean balance sheet, the company has effectively removed a potential obstacle to larger-scale project financing, which typically requires minimal existing debt obligations. This development could accelerate discussions with potential project financiers, particularly given the growing strategic importance of critical minerals projects in North America.

NioCorp's Balance Sheet is Now Clear of all Long-Term Debt

CENTENNIAL, CO / ACCESS Newswire / February 10, 2025 / NioCorp Developments Ltd. (NASDAQ:NB) ("NioCorp" or the "Company"), is pleased to announce that all remaining obligations under the original $8,000,000 aggregate principal amount of unsecured notes of NioCorp issued on April 12, 2024 (the "Notes") have been satisfied.

The Notes were issued and sold to YA II PN, Ltd. ("Yorkville"), an investment fund managed by Yorkville Advisors Global, LP, and Lind Global Fund II LP, an investment fund managed by The Lind Partners, LLC (together with Yorkville, the "Purchasers"),pursuant to a Securities Purchase Agreement, dated April 11, 2024 (the "Purchase Agreement"), by and between NioCorp and each of the Purchasers. Pursuant to the Purchase Agreement, the Purchasers advanced an aggregate of $6,960,000 to NioCorp in consideration of the issuance by NioCorp to the Purchasers of $8,000,000 aggregate principal amount of Notes and warrants to purchase up to an aggregate 615,385 common shares, without par value, of NioCorp.

Following this final payment, all amounts due under the Notes to the Purchasers have been paid by NioCorp.

"NioCorp is pleased to have completed payments and fully extinguished these Notes. We now look forward to continuing our efforts to secure sufficient project financing necessary to launch construction of our Elk Creek Critical Minerals Project in Nebraska," said Mark A. Smith, Executive Chairman and CEO of NioCorp.

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FOR MORE INFORMATION:

Jim Sims, Corporate Communications Officer, NioCorp Developments Ltd., (720) 334-7066, jim.sims@niocorp.com

@NioCorp $NB #Niobium #Scandium #rareearth #neodymium #dysprosium #terbium #ElkCreek #EV #electricvehicleemail

ABOUT NIOCORP

NioCorp is developing our critical minerals project in Southeast Nebraska (the "Elk Creek Project") that is expected to produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Elk Creek Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of neodymium-iron-boron magnets, which are used across a wide variety of defense and civilian applications.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements may include, but are not limited to, statements regarding NioCorp's expectation of producing niobium, scandium, and titanium, and the potential of producing rare earths, at the Elk Creek Project; and NioCorp's ability to secure sufficient project financing to complete construction of the Elk Creek Project and move it to commercial production. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements are based on the current expectations of the management of NioCorp and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms or at all; our ability to service our existing debt and meet the payment obligations thereunder; the future price of metals; the stability of the financial and capital markets; and current estimates and assumptions regarding the business combination with GX Acquisition Corp. II (the "Business Combination") and the standby equity purchase agreement (the "Yorkville Equity Facility Financing Agreement" and, together with the Business Combination, the "Transactions") with Yorkville, and their benefits. Such expectations and assumptions are inherently subject to uncertainties and contingencies regarding future events and, as such, are subject to change. Forward-looking statements involve a number of risks, uncertainties or other factors that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made by NioCorp with the U.S. Securities and Exchange Commission and with the applicable Canadian securities regulatory authorities and the following: NioCorp's ability to operate as a going concern; NioCorp's requirement of significant additional capital; NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms or at all; NioCorp's ability to receive a final commitment of financing from the Export-Import Bank of the United States on an acceptable timeline, on acceptable terms, or at all; NioCorp's ability to recognize the anticipated benefits of the Transactions, including NioCorp's ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing Agreement; NioCorp's ability to continue to meet the listing standards of Nasdaq; risks relating to NioCorp's common shares, including price volatility, lack of dividend payments and dilution or the perception of the likelihood of any of the foregoing; the extent to which NioCorp's level of indebtedness and/or the terms contained in agreements governing NioCorp's indebtedness or the Yorkville Equity Facility Financing Agreement may impair NioCorp's ability to obtain additional financing; covenants contained in agreements with NioCorp's secured creditors that may affect its assets; NioCorp's limited operating history; NioCorp's history of losses; the material weaknesses in NioCorp's internal control over financial reporting, NioCorp's efforts to remediate such material weaknesses and the timing of remediation; the possibility that NioCorp may qualify as a passive foreign investment company under the U.S. Internal Revenue Code of 1986, as amended (the "Code"); the potential that the Transactions could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences as a result of the application of Section 7874 and related sections of the Code; cost increases for NioCorp's exploration and, if warranted, development projects; a disruption in, or failure of, NioCorp's information technology systems, including those related to cybersecurity; equipment and supply shortages; variations in the market demand for, and prices of, niobium, scandium, titanium and rare earth products; current and future offtake agreements, joint ventures, and partnerships; NioCorp's ability to attract qualified management; estimates of mineral resources and reserves; mineral exploration and production activities; feasibility study results; the results of metallurgical testing; the results of technological research; changes in demand for and price of commodities (such as fuel and electricity) and currencies; competition in the mining industry; changes or disruptions in the securities markets; legislative, political or economic developments, including changes in federal and/or state laws that may significantly affect the mining industry; the impacts of climate change, as well as actions taken or required by governments related to strengthening resilience in the face of potential impacts from climate change; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the timing and reliability of sampling and assay data; 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 labor 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; management of the water balance at the Elk Creek Project site; land reclamation requirements related to the Elk Creek Project; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; claims on the title to NioCorp's properties; potential future litigation; and NioCorp's lack of insurance covering all of NioCorp's operations.

Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of NioCorp prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

All subsequent written and oral forward-looking statements concerning the matters addressed herein and attributable to NioCorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Except to the extent required by applicable law or regulation, NioCorp undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

SOURCE: NioCorp Developments Ltd.

View the original press release on ACCESS Newswire

FAQ

What was the total value of NioCorp's (NB) debt notes paid off in February 2025?

NioCorp paid off $8 million in unsecured notes that were originally issued on April 12, 2024.

How much did NioCorp (NB) actually receive from the April 2024 notes?

NioCorp received $6.96 million in advance from the purchasers against the $8 million in notes.

How many warrants were issued with NioCorp's (NB) April 2024 notes?

The notes came with warrants to purchase up to 615,385 common shares of NioCorp.

What is NioCorp's (NB) next financial focus after clearing the April 2024 notes?

NioCorp's next focus is securing project financing for the construction of its Elk Creek Critical Minerals Project in Nebraska.