Yes my "gut" feels that there will be "some" form of financing soon. Remember that the loan to MS has to be addressed in June.
When I saw that FS 2022 was issued without the REEs included and the NI 43-101 not yet done I thought that one of MS's option A, B, C, D, E might have been pressing for an update of the FS 2019:
1. Update with new estimates of the CAPEX, OPEX, and REVENUE
2. Identify, to the extent that you legally can, what the situation is with the REEs
3. Verify that the plan proposed for Nb-Sc-Ti mining, processing, and sale of the products at the purity levels and forms is valid.
Then we (the financing group) can make a decision with the following in mind:
- FS 2022 is valid and investable/financable.
- NioCorp owns the land that will be initially mined and used for processing.
- The land that NioCorp owns is a small percentage of the total required to cover the carbonatite mass that has been detected and that NioCorp has options to purchase that land.
- The potential ore body is open in two directions and at depth, so no one really knows how much Nb-Sc-Ti-REEs is really down there.
- The FS 2022 plan is fully permitted.
- Open issues concerning ore processing that L3 is now investigating will be adopted only if it provides a positive enhancement to the ROI of the FS 2022.
- The possible changes in ore processing may reduce OPEX, improve operating efficiencies and recoveries, and may allow NioCorp to produce some of our Nb-Sc-Ti-REEs to a purity level and in a form that would put some of the products in the “specialty chemicals” category which usually carry higher prices than commodity chemicals.
- If the work that L3 is currently doing is not adopted the plan put forward in FS 2022 is still valid
- The open issue about REEs appears to be positive and if adopted would further enhance FS 2022
- - The NI 43-101 is being worked on and will be issued in the future.
- - Although not complete the two 3rd party firms, Understood Mineral Resources Ltd. and Dahrouge Geological Consulting Ltd., participated in preparing the FS 2022 and the PR released on May 18, 2022.
- - The "Probable" category of total Rare Earth Oxides (TREOs) are estimated at 632.9 kt (kilo tonnes) including:
- - - 26.9 kt of praseodymium
- - - 98.9 kt of neodymium
- - - - 2.3 kt of terbium
- - - - 9.1 kt of dysprosium
- - The above are predominantly REE oxides that go into permenant magnets.
- The plan to include these REEs as BY-PRODUCTS will be adopted only if it provides a positive enhancement to the ROI of the FS 2022.
- If the production of REEs is not adopted the plan put forward in FS 2022 is still valid.
- The FS 2022 is valid and investable/financable.
- The two main outstanding issues, work by L3 and inclusion of REEs, will be adopted only if they provide positive enhancement to the ROI of the FS 2022
- If either or both are not adopted then the plan put forward in FS 2022 is still valid and investable/financable.
It is my opinion that there was a push to get a revision to the FS 2019 to provide a "cake" that can be consumed. The two main "in the sky" issues are positive and will provide extra "icing" on the "cake" if adopted, and have no negative impact on FS 2022 if they are not adopted.
Lets get this projected in the ground!!!!
