NioCorp Developments Ltd. (“
NioCorp” or the
“
Company”) (
TSX: NB;
OTCQX: NIOBF; and
FSE: BR3) is
pleased to announce that it has signed a commercial sales agreement
with Traxys North America LLC (“
Traxys”) for up to
120 tonnes of scandium trioxide over the first 10 years of
operation of NioCorp’s planned Elk Creek Critical Minerals Project
(the “
Project”) in Nebraska. The contract
presupposes the Company securing project financing, obtaining all
necessary approvals, and constructing a mine and processing
facility at Elk Creek.
Under the sales agreement, Traxys is obligated to
purchase 12 tonnes per year of scandium trioxide for the first 10
years of the Project’s production, subject to satisfaction of
certain conditions. That annual amount represents
approximately 10 percent of NioCorp’s planned annual production of
Scandium. Traxys can purchase more than 12 tonnes per year
from NioCorp, and the agreement can be extended beyond the 10-year
term, by mutual agreement.
At 12 tonnes per year, the size of the
NioCorp-Traxys sales contract is approximately equivalent to all
current global sales of scandium, according to 2018 estimates by
the U.S. Geological Survey. Independent estimates of latent
demand for scandium, defined as demand that cannot be satisfied
because of a lack of supply or a lack of knowledge of available or
affordable supply, peg such demand at several hundred tonnes per
year in the aerospace sector alone.1
Mark A. Smith, CEO and Executive Chairman of
NioCorp, said: “We are very pleased with the size, term, and
potential value of this contract. But a core value component
of this agreement lies in the strategic partnership it establishes
between NioCorp and Traxys. Traxys is a global leader in a
variety of strategic and industrial metals markets, and it has a
long track record of success in both serving and growing global
markets for strategic materials such as scandium. We look
forward to working with the leadership at Traxys to build and grow
markets for a variety of scandium materials.”
Mark Kristoff, CEO of Traxys, said: “Scandium
delivers truly remarkable benefits and enhanced performance across
a variety of applications, and global demand for scandium clearly
has been limited to date by a lack of supply. NioCorp’s Elk
Creek Project will change the fundamental calculus of scandium
markets substantially, and we see significant growth potential in
these markets as a result. Traxys looks forward to working
with NioCorp to establish and grow new markets for scandium and to
helping our customers leverage the value of this remarkable
metal.”
Traxys will focus its scandium sales and marketing
efforts on customers in the aerospace and sporting goods sectors,
and it retains the exclusive right to sell NioCorp scandium to
those sectors. In return, Traxys has agreed to purchase its
entire needs of scandium trioxide, scandium alloys, scandium master
alloy and other scandium-based products exclusively from NioCorp,
including for scandium sales to other sectors, subject to
availability of adequate supplies by NioCorp and other
conditions. NioCorp will work with Traxys to promote and
market scandium to the aerospace, sporting goods and other industry
sectors. NioCorp retains the right to make direct sales of
scandium to markets outside of aerospace and sporting goods, as
well as direct sales to the U.S. Government.
With over 20 global offices and $6 billion in
average annual revenue, Traxys is a global leader in the sales and
marketing of a variety of specialty and industrial metals,
including the following: magnesium; zinc; copper; lead;
cobalt, chrome, manganese; rare earths; vanadium, titanium;
tantalum; silicon carbide; uranium; and ferro alloys such as
ferro-chrome, ferro-manganese, ferro-nickel, and
ferro-niobium. It is majority owned by The Carlyle Group
(NASDAQ: CG), with significant minority interests
of other private investors and the Traxys management team.
@NioCorp $NB $NIOBF $CG #Niobium #Scandium #ElkCreek #Traxys
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments
Ltd., 720-639-4650, jim.sims@niocorp.com
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.
Certain statements contained in this document may constitute
forward-looking statements, including but not limited to NioCorp’s
ability to produce scandium in sufficient quantifies and quality to
meet the requirements of Traxys and other customers; Traxys’
ability to sell NioCorp’s scandium products; the forecast demand
for scandium by industries such as aerospace, and the future size
and growth of global scandium markets. Such forward-looking
statements are based upon NioCorp’s reasonable expectations and
business plan at the date hereof, which are subject to change
depending on economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause NioCorp’s plans or
prospects to change include the following: risks related to
our ability to operate as a going concern; our requirement of
significant additional capital; our limited operating history;
changes in economic valuations of the Elk Creek Project, such as
net present value calculations, changes or disruptions in the
securities markets; our history of losses; cost increases for our
exploration and, if warranted, development projects; feasibility
study results; mineral exploration and production activities; our
lack of mineral production from our properties; the results of our
metallurgical testing; the price volatility of commodities;
estimates of mineral resources and reserves; changes in mineral
resource and reserve estimates; differences in United States and
Canadian reserve and resource reporting; our exploration activities
being unsuccessful; our ability to obtain permits and licenses for
production; government and environmental regulations that may
increase our costs of doing business or restrict our operations;
proposed legislation that may significantly affect the mining
industry; land reclamation requirements; competition in the mining
industry; the difficulties of handling the disposal of mine water
at our Elk Creek Project; equipment and supply shortages; current
and future joint ventures and partnerships; our ability to attract
qualified management; the ability to enforce judgment against
certain of our Directors; currency fluctuations; claims on the
title to our properties; surface access on our properties;
potential future litigation; our lack of insurance covering all our
operations; covenants contained in agreements with our secured
creditors that may affect our assets; the extent to which our level
of indebtedness may impair our ability to obtain additional
financing; our status as a “passive foreign investment company”
under the United States Internal Revenue Code of 1986, as amended;
our Common Shares, including price volatility, lack of dividend
payments, dilution and penny stock rules; and our status as an
“emerging growth company” and the impact of related reduced
reporting requirements on our ability to attract investors; and the
risks set forth under the heading “Risk Factors” in the Company’s
S-1 registration statement and other filings with the SEC at
www.sec.gov. NioCorp disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise.
Unless stated otherwise, information of a
scientific or technical nature in this presentation regarding the
Elk Creek Superalloy Project is summarized, derived or extracted
from, the technical report entitled: “Revised NI 43-101 Technical
Report Feasibility Study Elk Creek Niobium Project Nebraska”
effective June 30, 2017 and dated December 15, 2017. The technical
report has been filed under the Company’s issuer profile on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov.
1 Source: OnG Commodities, LLC. This data is part of
a scandium market assessment prepared for NioCorp by OnG in April
2017. The data is incorporated in NioCorp’s December 2017
Revised Elk Creek Project Feasibility Study and is available for
download on www.SEDAR.ca
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