NioCorp Arranges a USD $2 Million Non-Revolving Credit Facility
January 20 2017 - 5:01AM
NioCorp Developments Ltd. (“NioCorp” or the "Company”) (TSX:NB)
(OTCQX:NIOBF) (FSE:BR3), is pleased to announce that it has
arranged a non-revolving credit facility agreement in the amount of
USD $2 million between the Company and its Executive Chairman and
Chief Executive Officer, Mark A. Smith. These funds will support
ongoing working capital needs.
The credit facility will bear 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
January 16, 2018. In connection with the establishment of the
facility, NioCorp has drawn down an initial loan amount of USD
$175,000.
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. The material change
report in relation to the credit facility will be filed less than
21 days before the expected closing date as the Company wishes to
complete the credit facility as soon as commercially practical
after all required approvals are obtained.
On Behalf of the Company,
"Jim Sims”
Jim Sims VP, External Affairs
Source: NioCorp Developments
Ltd. @NioCorp $NB $NIOBF $BR3 #Niobium #Scandium #ElkCreek
About NioCorp
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 ("HSLA") 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.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this
document.
For More Information: Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
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