Just came across this news!!! Enjoy the 4th!!!!
CENTENNIAL, COLORADO -- (Marketwired) -- 07/02/15 -- NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX: NB)(OTCQX: NIOBF)(FRANKFURT: BR3) is pleased to announce that it has arranged a non-revolving credit facility agreement in the amount of USD $2 million dated July 1, 2015 between the Company and its Executive Chairman, Mark Smith. These funds will contribute to the continued work necessary to keep the Elk Creek Niobium Project on its original timeline for completion of the Company's Feasibility Study. Each draw on the credit facility made by the Company will be secured and evidenced by a promissory note in favor of Mr. Smith. 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 both a 2.5% establishment fee and 2.5% prepayment fee. The amounts outstanding under the credit facility will become due June 17, 2016.
"NioCorp's Board of Directors would like to reiterate our thanks to Mr. Smith for his continued support of the Company's mission, as we continue our push towards completion of our Feasibility Studyfor the Elk Creek Niobium Project," said Joseph A. Carrabba, Lead Director of NioCorp's Board. "This credit facility, in addition to Mark's previously announced loan, underlines his dedication to NioCorp's success."
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.
