NioCorp Engages J.P. Morgan to Assist with EXIM Financing of Elk Creek Critical Minerals Project
NioCorp Developments has engaged J.P. Morgan to assist in securing debt financing from the Export-Import Bank of the U.S. (EXIM) for its Elk Creek Critical Minerals Project. Having progressed through the first of EXIM's three Transaction Review Committee reviews, NioCorp received a preliminary indicative term sheet in April 2024. However, final loan approval from EXIM's Board of Directors is still pending. The collaboration aims to accelerate the financing and construction start of the project.
- NioCorp has engaged a reputable financial institution, J.P. Morgan, to assist with financing.
- The Elk Creek Project has passed the first review stage of EXIM's approval process.
- Preliminary indicative term sheet received from EXIM in April 2024 indicates potential financing readiness.
- Partnership with J.P. Morgan aims to expedite project financing and construction.
- Final loan approval from EXIM's Board of Directors is still pending.
- No guarantee that the EXIM financing will be fully secured.
- Potential delays in project advancement if financing approval is not obtained promptly.
Insights
The engagement of J.P. Morgan by NioCorp to assist with EXIM financing is a significant step forward for the Elk Creek Critical Minerals Project. This partnership indicates that NioCorp is making serious moves to secure the necessary funds to advance their project, which could be a strategic advantage. J.P. Morgan's expertise in crafting financing packages backed by EXIM could increase the likelihood of securing the required debt financing, which would be a substantial positive development for the company.
From a financial perspective, securing EXIM financing would likely improve NioCorp's liquidity, enabling the company to fund the construction and development of the project without excessively diluting existing shareholders. The preliminary indicative term sheet from EXIM is a constructive signal, showing progress in the approval process, although it’s important to note that final approval is still pending.
For investors, this development could be seen as a positive sign of NioCorp's ability to attract reputable financial partners and navigate complex funding processes, which could bode well for the project's future success and, consequently, the company's stock performance.
Securing financing for critical minerals projects like Elk Creek is pivotal, particularly given the growing global demand for these resources. NioCorp's move to engage J.P. Morgan underscores the importance of this project not only to the company but also to broader market dynamics. Critical minerals are essential for various high-tech industries, including renewable energy and electric vehicles, making this project's potential impact on the market significant.
Involving J.P. Morgan, a major financial institution, provides credibility and could enhance investor confidence in NioCorp's ability to execute its strategic initiatives. The progression through EXIM’s review stages also indicates that the project aligns with U.S. economic and strategic interests, potentially increasing its chances of receiving funding. However, investors should remain cautious until the final approval is secured, as there are still hurdles to overcome.
Overall, this development could positively influence NioCorp's market position, potentially improving investor sentiment and the stock's attractiveness.
CENTENNIAL, CO / ACCESSWIRE / May 23, 2024 / NioCorp Developments Ltd. ("NioCorp" or the "Company") (NASDAQ:NB) is pleased to announce that it has engaged JPMorgan Chase Bank, N.A. ("J.P. Morgan") to assist NioCorp in seeking debt financing supported by the Export-Import Bank of the U.S. ("EXIM") to advance NioCorp's proposed Elk Creek Critical Minerals Project (the "Project").
NioCorp's application for project financing with EXIM made it through the first of EXIM's three Transaction Review Committee (TRC) reviews in October 2023. In April 2024, EXIM provided NioCorp with a preliminary indicative term sheet for possible financing. While JPMorgan is assisting the Company to advance the sought financing to the next level in the EXIM approval process, no loan application is final until EXIM's Board of Directors give its final approval.
"With J.P. Morgan's experience in helping to successfully craft financing packages with EXIM, we are very pleased to be working with them to continue to push our Elk Creek Project to financing and a construction start as rapidly as possible," said Mark A. Smith, CEO and Chairman of NioCorp.
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For More Information: Jim Sims, Chief Communications Officer, NioCorp Developments Ltd., 720-334-7066, jim.sims@niocorp.com
About NioCorp
NioCorp is developing a critical minerals project in Southeast Nebraska 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. @NioCorp $NB
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 the timing and process of the review and diligence of NioCorp's application for debt financing from EXIM, and NioCorp's expectation to produce niobium, scandium and titanium and the potential to produce rare earths at the Project. 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. 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 pay the necessary fees in connection with EXIM's underwriting process, including the expenses of EXIM's or any other lenders' legal and other advisors and NioCorp's own advisors; the completion of the Phase II due diligence process, following receipt of the PPL; the possibility that NioCorp does not receive a final commitment of financing from EXIM on the anticipated timeline, on acceptable terms, or at all; NioCorp's ability to recognize the anticipated benefits of 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 YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP, including NioCorp's ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing Agreement over the next three years; unexpected costs related to the Transactions; the outcome of any legal proceedings that may be instituted against NioCorp following closing of the Transactions; NioCorp's ability to continue to meet the listing standards of the NASDAQ; NioCorp's ability to operate as a going concern; risks relating to NioCorp's common shares, including price volatility, lack of dividend payments and dilution or the perception of the likelihood any of the foregoing; NioCorp's requirement of significant additional capital; 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 off take agreements, joint ventures, and partnerships; NioCorp's ability to attract qualified management; the effects of the COVID-19 pandemic or other global health crises on NioCorp's business plans, financial condition and liquidity; 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 Project site; land reclamation requirements related to the 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.
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FAQ
What is the latest development in NioCorp's Elk Creek Project as of May 2024?
What stage is NioCorp's EXIM financing application for the Elk Creek Project?
When did NioCorp receive a preliminary indicative term sheet from EXIM for financing?
Which financial institution is assisting NioCorp with the EXIM financing for the Elk Creek Project?
Is the EXIM financing for NioCorp's Elk Creek Project finalized?
