ThyssenKrupp Metallurgical Products to Purchase 50% of NioCorp's Ferro-Niobium Production

  • Friday, December 19, 2014
  • Source:ferro-alloys.com

  • Keywords: niobium oxide,Nb2O5,FeNb,ferroniobium
[Fellow]ThyssenKrupp Metallurgical Products will purchase approximately 3,750 metric tons or roughly fifty percent (50%) of NioCorp's planned Ferro-Niobium production from its Elk Creek deposit for an initial ten year term

 NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX VENTURE: NB)(OTCQX: NIOBF)(FRANKFURT: BR3) is pleased to announce that it has entered into an offtake agreement ("Agreement") with ThyssenKrupp Metallurgical Products GmbH whereby ThyssenKrupp Metallurgical Products will purchase approximately 3,750 metric tons or roughly fifty percent (50%) of NioCorp's planned Ferro-Niobium production from its Elk Creek deposit for an initial ten year term, with an option to extend beyond that time-frame. The Agreement presupposes the Company obtaining project financing, obtaining all necessary approvals and constructing a mine at Elk Creek.

Thyssen Krupp Metallurgical Products is one of the world's leading commodity trading companies. Based in Essen, Germany, the company is part of the Business Area Materials Services, a global materials distributor and service provider with 500 branches in 44 countries.

The Company has appointed ThyssenKrupp Metallurgical Products as its exclusive sales agent of its production in Europe, with a stated amount to be sold in Germany. Both companies will work closely together to support Niocorp's project financing; this explicitly includes not only debt, but also possibilities of equity financing and potential government loans.

"We are extremely pleased to have one of the world's leading commodity trading company as a significant customer. Our team looks forward to building a long-term, mutually beneficial relationship with ThyssenKrupp Metallurgical Products," said Mark Smith, CEO of NioCorp. "This Agreement is obviously conditional on the Company obtaining project financing to build a mine at Elk Creek. However, having the Agreement in place and discussing debt and equity financing possibilities with ThyssenKrupp Metallurgical Products, clearly enhances NioCorp's prospects of achieving those milestones," continued Smith. "We caution that achieving this is not assured at this time, as we have not concluded the feasibility stage; the process commenced in the spring of this year and is expected to conclude in the first half of 2015. However, entering into this Agreement provides us with confidence that we are pursuing the right strategic plan and lends credibility to the Company," said Smith.

Pursuant to the Agreement, the Company has also granted ThyssenKrupp Metallurgical Products a non-transferable warrant entitling ThyssenKrupp Metallurgical Products to acquire 8,569,000 common shares of the Company at an exercise price of CAD $0.67 per common share, resulting in proceeds of US $5,000,000 should all warrants be exercised. The warrants are open for exercise until December 12, 2015.

  • [Editor:Yueleilei]

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