- NioCorp Developments (TSX:NB) has agreed to sell 25 per cent of its ferroniobium production from the Elk Creek Project
- The offtake agreement would be the project’s third, and effectively sell out NioCorp’s entire ferroniobium production over the first decade
- NioCorp struck the deal with a large, undisclosed US-based steel producer, but has not yet finalised it
- However, construction at Elk Creek has yet to begin, and NioCorp is currently securing financing to move the project forward
- NioCorp Developments (NB) is down 1.59 per cent, with shares trading for $0.62 and a market cap of $145.6 million
NioCorp Developments (TSX:NB) may have sold 25 per cent of its ferroniobium production at the Elk Creek Project in Nebraska.
The company has signed a non-binding letter of intent regarding the deal, with an undisclosed US-based steel producer.
Previously, NioCorp announced two separate ferroniobium offtake agreements with ThyssenKrupp Metallurgical Products and CMC Cometals. The deals guaranteed the two buyers a cumulative 75 per cent of the project’s ferroniobium production in the first decade.
If this latest agreement goes through, NioCorp would have effectively sold out the project’s entire ferroniobium production over its inaugural decade.
Ferroniobium primarily has uses in the production of high-strength low-alloy steel.
NioCorp’s Executive Chairman and CEO, Mark A. Smith, believes that this bodes well for the company’s flagship project.
“We are very pleased to have reached this non-binding LOI with a large US-based steel producer, who we cannot name because of our confidentiality agreement with them.
We look forward to executing a commercial sales offtake agreement at the right time, and to supplying this steel producer with Nebraska-produced ferroniobium,” he said.
However, the company has not yet finalised the deal, or negotiated any specifics.
The Elk Creek Superalloy Materials Project is still in development. NioCorp plans to produce niobium, scandium, and titanium at the site over a 36-year mine life. All of those elements will be used in the high-strength low-alloy steel industry.
Construction has yet to begin and the company is currently securing financing to move the project forward.
NioCorp Developments (NB) is down 1.59 per cent, with shares trading for $0.62 at 9:30am EST.
