NioCorp Expands Existing Non-Revolving Credit Facility to US$4 Million

Rhea-AI Summary

NioCorp Developments Ltd. has expanded its credit facility with Executive Chairman Mark Smith from US$3.5 million to US$4 million. The funds will support project financing efforts for the Elk Creek Project, aimed at starting construction. The facility carries a 10% interest rate, secured by company assets, and is due on June 30, 2023. This transaction is classified as a 'related party transaction' under MI 61-101, exempting it from formal shareholder approval as it is below 25% of NioCorp's market cap. The company continues to evaluate potential production of critical minerals like niobium, scandium, and titanium.

Positive

• Increased credit facility from US$3.5M to US$4M aids in financing Elk Creek Project.
• 10% interest rate is competitive for project financing.
• Exemption from formal shareholder approval due to transaction size.

Negative

• The facility is due on June 30, 2023, necessitating prompt financial arrangement.
• Continued reliance on related party transactions may raise governance concerns.

CENTENNIAL, Colo. , Feb. 28, 2023 /PRNewswire/ -- NioCorp Developments Ltd. ("NioCorp" or the "Company") (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$4 million from the previous limit of US$3.5 million.

Funds drawn on the credit facility will assist the Company in continuing its work to secure project financing for the Elk Creek Project (the "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 on June 30, 2023.

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 ("MI 61-101"). 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 $NB $NIOBF #Niobium #Scandium #ElkCreek #MarkSmith

For More Information

Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
https://www.niocorp.com

About NioCorp

NioCorp is developing a critical minerals project in Southeast Nebraska that will produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy ("HSLA") 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 ("NdFeB") magnets, which are used across a wide variety of defense and civilian applications.

Cautionary Note Regarding 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 about the Company's ability to secure project financing for the Elk Creek Project and move the project to a construction start. 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 the Company's ability to secure project financing for the Elk Creek Project and move the project to a construction start. 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 SEC 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 limited operating history; NioCorp's history of losses; 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; 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; 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 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; 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.

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SOURCE NioCorp Developments Ltd.

FAQ

What recent financial move did NioCorp make regarding its credit facility?

NioCorp expanded its credit facility with Executive Chairman Mark Smith from US$3.5 million to US$4 million.

What is the interest rate on NioCorp's expanded credit facility?

The interest rate on the expanded credit facility is 10%.

What will the expanded credit facility help NioCorp achieve?

The funds will assist in securing project financing for the Elk Creek Project.

When is the due date for the amounts outstanding under NioCorp's credit facility?

Amounts outstanding under the credit facility are due on June 30, 2023.

What exemption does NioCorp's credit facility transaction have under MI 61-101?

The transaction is exempt from formal valuation and minority shareholder approval because it is less than 25% of NioCorp's market capitalization.