NioCorp Satisfies Remaining Obligations Under the Yorkville Convertible Debenture

Rhea-AI Summary

NioCorp Developments (NASDAQ:NB) has announced the satisfaction of all remaining obligations under the original $16.0 million convertible debenture issued to Yorkville Advisors Global, LP in March 2023. This development marks a significant step for NioCorp as it continues its efforts to secure project financing for the construction of the Elk Creek Critical Minerals Project in Nebraska.

CEO Mark A. Smith expressed satisfaction with the debt extinguishment, emphasizing the company's focus on moving forward with their critical minerals project. The Elk Creek project is set to produce niobium, scandium, titanium, and rare earth elements including neodymium, dysprosium, and terbium, which are important for various high-tech and green energy applications.

Positive

• Extinguishment of $16 million convertible debenture debt
• Improved financial position for securing project financing
• Progress towards launching construction of Elk Creek Critical Minerals Project

Negative

• Potential need for additional financing to launch project construction

Insights

Financial Analyst

NioCorp's announcement regarding the full satisfaction of its obligations under the $16 million convertible debenture is a noteworthy development. Clearing this debt improves the company's balance sheet and reduces financial risk, which is a positive signal for both current and potential investors.

In the short term, this move may lead to a positive market reaction as it demonstrates NioCorp's financial prudence and ability to manage its liabilities effectively. It also indicates that the company is in a better position to secure additional project financing for its Elk Creek Critical Minerals Project. This project is strategically important given the growing demand for critical minerals like niobium, scandium and titanium.

In the long term, reducing debt obligations can lead to improved financial stability and potentially lower financing costs in the future. Investors should keep an eye on how NioCorp's management navigates the next steps in securing financing and advancing their Elk Creek project.

Market Research Analyst

From a market perspective, NioCorp's elimination of its convertible debenture debt signals a strengthening financial position, which can enhance investor confidence. This action removes a level of uncertainty and can make the company more attractive to both equity investors and potential lenders.

The critical minerals market is highly competitive and plays a important role in various industries, including technology and defense. NioCorp's focus on securing funding for its Elk Creek project aligns well with the increasing need for these materials. However, the ultimate success of this project will depend on timely and adequate financing, as well as effective project execution.

Investors should watch for updates on NioCorp's progress in securing project financing and any potential partnerships that could accelerate the development of the Elk Creek project. Positive developments in these areas could lead to significant valuation upticks for the company.

CENTENNIAL, CO / ACCESSWIRE / July 22, 2024 / NioCorp Developments Ltd. (NASDAQ:NB) ("NioCorp" or the "Company"), is pleased to announce that all remaining obligations under the original $16.0 million of the convertible debenture that was issued in March 2023 to YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP (together with YA II PN, Ltd., "Yorkville"), have been satisfied.

"NioCorp is pleased to have extinguished this debt and we 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 #Titanium $rareearth #neodymium #dysprosium #terbium #ElkCreek

ABOUT NIOCORP

NioCorp is developing a 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 progress toward securing sufficient project financing for the construction and operation of the Elk Creek Project and NioCorp's expectation to produce niobium, scandium and titantium and the potential to produce rare earths at the Elk Creek 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 for the construction of the Elk Creek Project on acceptable terms or at all. 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 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 Yorkville, 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 Stock Market LLC; 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; the possibility that NioCorp does not receive a final commitment of financing from the Export-Import Bank of the United States on the anticipated timeline, on acceptable terms, or at all; 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 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 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 accesswire.com

FAQ

What debt obligation did NioCorp (NB) satisfy in July 2024?

NioCorp (NB) satisfied all remaining obligations under the original $16.0 million convertible debenture issued to Yorkville Advisors Global, LP in March 2023.

What is NioCorp's (NB) next financial goal after extinguishing the Yorkville debt?

NioCorp's (NB) next financial goal is to secure sufficient project financing necessary to launch construction of the Elk Creek Critical Minerals Project in Nebraska.

What critical minerals will NioCorp's (NB) Elk Creek project produce?

NioCorp's (NB) Elk Creek project is set to produce niobium, scandium, titanium, and rare earth elements including neodymium, dysprosium, and terbium.

When was the original convertible debenture issued by NioCorp (NB) to Yorkville?

The original $16.0 million convertible debenture was issued by NioCorp (NB) to Yorkville in March 2023.