Niocorp Developments Ltd (NB)

[chico237]

Last time Sharing my TRAIL of 2021 to Jan. 2024 Q. & A. Responses From management/Jim Sims based on relevant questions about the Elk Creek Project over several years. Do your own D.D. & Form your own opinions & conclusions.
Please see Jim's responses 6/17/2021-
(Jim...Private funding methods have been the primary target however, ... can you offer any comment to the following questions.)
a) Does/Can Niocorp qualify for a U.S. govt. (DOE/DOD) Loan, or Loan Guarantee as described above or similar ?
**RESPONSE

"Quite possibly, and we are in discussions with them on this now. However, the ability of this program to fund critical minerals projects will depend upon what the Democratic leadership in Congress enacts in its appropriations bills, as new funding is required to cover the credit subsidy cost of these loans. In recent years, the Congressional appropriations process has been a very politically contentious with little bipartisan agreement on much of anything. Some opposition in the Congress has already quietly developed to the Administration’s proposal to expand this program’s traditional funding focus to include critical minerals mines, which it has not funded in the past. Regardless, it is not likely that funding levels for the credit subsidies used by these programs will be finalized until late this year, or into next year.

I will add that our team is very familiar with the DOE Loan Guarantee program, as we navigated this process some years ago. It is a very slow process and requires more than a year (for some projects) to complete. It also costs a great deal of money and resources in which to engage in this process – those costs can easily grow into the 7 figures. We continue to examine the possibilities here, however."

b) Has Niocorp possibly applied for a U.S. govt. Loan, or Loan Guarantee as described in the context above?
**RESPONSE

"No decision has yet been made as to whether or not to submit a formal application to this program, as our primary financing focus has been on private sector sources."

****THEN ON - 12/22/2021 Jim:
a) Has Niocorp recently applied for a U.S. govt. Loan, or Loan Guarantee as described in the context above?
**RESPONSE

"We are currently examining whether or not NioCorp’s Elk Creek Project would qualify for debt financing under the DOE/ LGP program.
Thx, Jim"

Please see Jim's response to questions posed for comment-3/17/2022:
A) Could you comment on what the production of higher purity niobium & titanium could be utilized for once realized?
**RESPONSE

"If the higher purity niobium and titanium intermediates that L3 was able to produce at bench-scale are replicated and proven at demonstration scale, this would put us in a position to more easily move to other products beyond those outlined in our 2019 Feasibility Study. Niobium oxide for use in Li-Ion batteries is one possible example, although the production of that product would require additional processing steps beyond the higher-purity niobium intermediate that we discussed in last week’s news release. The company is not yet in a position to make a determination on whether or not, and when, to possibly expand our Niobium product offering. Higher grade TiO2 could expose us to additional markets where higher margins could be obtained. But, again, we are not in a position to speak to those possibilities in any detail yet."

B) Niocorp’s preferred separation method is SX. Are these higher purity processes part of an improved SX process or “something else”?
**RESPONSE

"No, the processes we recently discussed occur in the earlier stages of the flowsheet, prior to any SX processing. We look forward to unveiling those details once these processes are verified at the demonstration plant level and once all associated work needed to complete an updated Feasibility Study is completed."

5/27/2022 -How Does Niocorp's Elk Creek Project compare to other "World Class Projects?"
***RESPONSE

"It is a bit tricky to compare rare earth projects on an apples-to-apples basis, which is why we chose to limit the comparison of our Elk Creek resource to other REE projects in the U.S. There are several reasons why. For one, there are several different legal systems that determine how a project can measure and disclose aspects of its mineral resource and/or reserve. For public companies that are SEC-reporting entities (such as NioCorp), the SK1300 standard must be followed. For public companies regulated by Canadian authorities (also such as NioCorp), there is the National Instrument 43-101 disclosure standard. In Australia, there is the JORC standard. Each of these systems differ in what they allow, or don't allow, in terms of public disclosure of mineral resources and reserves. This can lead to 'apples-to-oranges' comparisons among projects. Another challenge in making such comparisons is the mineralization of an REE project. Some projects can show a high ore grade of rare earths, but the mineralization of the ore is something that is very difficult to process. For example, rare earth projects based on silicate-based minerals -- such as eudialyte -- are extraordinarily difficult to economically process in order to pull the REEs out and separate them. Others can contain relatively high levels of other impurities, such as naturally occurring radioactive elements, that can increase the cost of processing. A high ore grade doesn't mean a lot if the REE mineralization isn't amenable to processing that is technically or economically infeasible. This is why only a small handful of the more than 200 REE-containing minerals have ever been successfully processed economically at commercial scale. (The two primary REE-containing minerals in the Elk Creek Project, bastnasite and monazite, are among those that have been successfully processed for decades).Rare earth resources also differ in terms of the relative distribution of individual REEs in the host mineral. Some may have a relatively high ore grade but also have high percentages of less valuable REEs, such as cerium or lanthanum or yttrium. Others have lower ore grades but their REE mineralization is skewed more favorably to higher-value REEs, such as the magnetics neodymium, praseodymium, dysprosium, and terbium which are used in NdFeB magnets. There are several other REEs that are also magnetic, such as samarium, but those are of lower value. Another way that REE projects are compared to one another is through a so-called “basket price.” This is a particularly misleading way of valuing a rare earth play, in my opinion, because a project’s ‘basket price’ assigns a dollar value to the individual REEs in the ore, multiplying total tonnes of each REE by current market price for that REE, and combines them all together. This assumes that a project will produce each and every one of the REEs in the ‘basket’ (which is almost never the case). It also ignores the enormous CAPEX and OPEX required to produce 14 or so individual REEs.

There are yet other factors that help determine the viability of a potential rare earth project. ~Some projects are aimed at only producing rare earths. That means that they are relatively riskier investments than projects that are designed to produce multiple products in addition to rare earths.
~Some projects that are relatively large in size, have high ore grades, and are comprised of processable minerals -- but they are located in places that make mining and processing difficult or very expensive. I can think of a few projects that are touted as attractive deposits but are located near or above the Arctic Circle, which generally makes mining more costly.
~ Others are located in places where there local residents, such as First Nations communities in Canada or anywhere in Greenland, can readily block a project from moving to commercial operation. Still others are in countries where local governments are less stable than in the U.S., or are simply prone to corruption, which exposes the project to high country risk.
~Many REE projects are proposed by teams that have no experience in commercially processing REEs. They tend to gloss over that fact. Knowing what I know about the challenges of producing separated, high-purity REEs, this is one of the most important factors I consider when I look at REE projects. But that is just my opinion.
A more useful comparison strategy for investors is to look at rare earth projects through multiple lenses, such as those I describe above. It is not easy to do this if one doesn’t have a pretty deep understanding of the REE industry and the challenges of successfully making these strategic metals.

Having said all of that, it’s clear that our Elk Creek carbonatite is very large and similar in total contained rare earths to some of the largest known rare earth resources in the world, including the Araxa carbonatite in Brazil and the St. Honore carbonatite in Quebec."
Jim Sims

On 8/3/2022 :
Jim- Could you offer comment on how this may affect the Elk Creek Mine moving forward?) 117th Cong., 1st Sess. H. R. 5376
H.R.5376 - 117th Congress (2021-2022): Inflation Reduction Act of 2022 | Congress.gov | Library of Congress
***Response:

"The Senate Democrats’ “Inflation Reduction Act of 2022” legislation does indeed include several provisions that may be helpful to the Elk Creek Project. These include both production tax credits that would apply to all the critical minerals that we intend to produce, additional funding for the DPA Title III program aimed at supporting critical minerals production, and additional lending authority for the Title XVII program at DOE. If these provisions survive the amendment processes in the Senate and House, the Byrd Rule in the Senate, and can be passed by both Houses of Congress and is signed into law, it could have multiple positive impacts to the Project.

The bill text, as is presently available publicly, is attached. This bill will undoubtedly change when the Senate takes up the reconciliation process, as reconciliation does not limit amendments. There will be many amendments offered by both sides. Some of the bill’s provisions may not survive challenges on the Senate floor under what we call the “Byrd Rule.” Additionally, implementing regulations must be written by agencies of jurisdiction following the bill’s enactment into law to determine many of the details of various programs and funding initiatives. As always with government programs and processes, little happens quickly.

Apart from this bill’s proposed provisions, we have been working with several federal agencies regarding potential assistance to the Elk Creek Project, but those agencies do not allow us to disclose any details of those processes. "

All the best, Jim

Sharing Jims's responses to " Relevant" questions on 11/15/2022:
1) - Has Niocorp recently applied for a DoE/LPO loan for "debt"..?
*RESPONSE:

"We are indeed in discussions with several U.S. federal agencies about potential financial assistance to the Project, but all have very strict rules about disclosure of those discussions and processes. I’m sorry but I cannot say anything more about this at present. "

2) - Could any additional CO2 capture methods still be possible by ex-situ, direct mineralization, or other methods now being undertaken via the New Process
*RESPONSE:

"The reagent recycling tied to the Calcium and Magnesium removal, which we recently announced as part of our demonstration plant operations, is effectively a carbon sink and is expected to reduce the carbon footprint of the eventual operation*."*

3) - Who owns the patent/rights to this New Process being implemented? Or can it be licensed moving forward?
*RESPONSE:

"We hold the rights to any intellectual property developed and related to the Elk Creek process by virtue of our contractual relationships with L3 and other entities involved in the work. While our focus remains on using proven commercial technologies in the public domain, we will act to protect the parts of our process that may be novel. "

Photo: January of 2023 ~ Niocorp's Management team in D.C.~ NIOCORP MET WITH MEMBERS OF CONGRESS & THE WHITEHOUSE!!!


Sharing Responses from Jim Sims to three relevant questions on 3/13/2023
Jim-
A) Could you offer comment on What Scope 3 emissions mean for the Elk Creek mine moving forward into production & to the end users utilizing the products being processed at the mine? & Would Niocorp's Scope 3 Carbon Emission Reductions qualify for/as "Carbon Credits" in the context above? Could/Does Niocorp's "Carbon Friendly GHG/ESG" mining processes & work scope qualify for- INNOVATIVE CLEAN ENERGY LOAN GUARANTEES | Department of Energy?
***Response:

"We have made an internal estimate of the benefits of our planned products at a Scope 3 emissions level. However, the definition and applicability of Scope 3 emissions must eventually be determined by government regulators, and the SEC is examining many aspects of this issue now. At present and in general, carbon credits are created by mitigation measures taken at the Scope 1 emissions level, although there are several different approaches being examined across the U.S. As to DOE programs, I am not allowed to comment on that at this time."

B) Is/Could an "ANCHOR" Investor/s still have interest in the Elk Creek Project? Comment If you can... (A,B,C,D.... as all options are on the table.)
***Response:

"Yes. "

C) (Follow up) - Is Niocorp still engaged with "Several Federal Agencies" other than the EXIM Bank as sources for "Debt" or Off-take agreements? Comment if you can...
***Response:

"Yes, multiple federal agencies, elected officials in the Congress, and the WH. "

*********JIM SIMS/NIOCORP : RESPONDS TO TWO ONGOING RELEVANT QUESTIONS MAY 5, 2023

RESPONSE: "There are several DOE programs, including the LGP program (Title XVII), that could potentially provide debt assistance to NioCorp."

RESPONSE: " As I have stated many times before, we are not allowed to confirm or deny whether we have a pending application with the DOE for this or other programs." -

*****ON ~MAY, 26th 2023~
Trying to get a handle on REE's I asked Jim to comment on the following: We have the NI43-101 report stating pounds in the ground and recent news (as mentioned below) stating 92% recoveries.
NioCorp’s Rare Earth Demonstration Plant Showing Strong Rare Earth Recovery Results, in Line with Expectations
https://www.niocorp.com/niocorps-rare-earth-demonstration-plant-showing-strong-rare-earth-recovery-results-in-line-with-expectations/

JIM - What I’m trying to deduce is final tonnage/output. Early on Scott mentioned expected over 750 tons per year of REE. Can you offer comment:
**RESPONSE

"REE separations extraction of the individual elements will result in only about a 1% further reduction in the overall REE recovery rate we have already demonstrated for extracting the REEs from solution as a group, as SX it is a very efficient process and our folks have years of experience of doing this kind of REE separation and purification at commercial scale. Thus, it is safe to assume at this point that total REE recovery rate from ore to final separated product will be around 92%. This is about the same as our scandium recovery rate, which is not surprising given that Scandium behaves just like the other REEs in solution."

"NioCorp has not made a final determination on which REE products we will make, including tonnages, etc.. That determination can only be made in the context of publication of an updated Feasibility Study."

JUNE 2023 NIOCORP RANKS AMONG TOP 30 REE PROJECTS ~ Global rare earth elements projects: New developments and supply chains:
https://www.sciencedirect.com/science/article/pii/S0169136823001439?ref=pdf_download&fr=RR-2&rr=8405627daeca4ce9

JUNE 6, 2023 ~NioCorp Applies for Debt Financing from the US Export-Import Bank:
https://www.niocorp.com/niocorp-applies-for-debt-financing-from-the-us-export-import-bank/


****AUGUST 14, 2023, ~Good morning - Jim! While waiting for Niocorp’s "THEN" 2023 F.S. Release… The announcement for Scandium Alloy Production & Scandium alloy funding are most welcome! Leading me to add to my line of questions regarding Scandium & (Niocorp).
A) Would Niocorp qualify for a portion of this recent funding once approved by Congress? Moving forward.
***RESPONSE:

*******"This funding was placed in the FY24 DoD Appropriations bill at the request of Nebraska Senator Deb Fischer, a member of the Senate Appropriations Committee, for the purpose of helping to fund NioCorp's effort to establish domestic commercial production of AlSc master alloy. There is always a process within the DoD to select appropriate projects with funding provided to it by Congress. ****In this case, however, the House and Senate Armed Services Committees provided additional guidance to DoD on this topic in their respective National Defense Authorization bills, including prioritizing domestic production of such materials. "

(Next Question ~ For context:)

A- (Imperial mining, CleanTech, & Scandium International all have patents on Scandium & Sc aluminum alloy products. Rio Tinto has established a North American domestic supply (@ 15 tons/year with expansion capabilities) & has established a working relationship with Boeing.
B- Niocorp has produced Scandium aluminum with both IBC (under Chris Huskamp now with Jabil) & with Ames Lab, but has yet to patent any process or materials.
C- Niocorp has established a working relationship with Nanoscale to produce patentable Scandium Aluminum products in the years ahead…)

Jim-
B) How Does/will Niocorp’s expected Scandium production & future patentable Scandium materials be utilized by management moving forward? Once realized…. ; and How do/would they compare to those materials & alloys already developed or patented?
***RESPONSE:

***"Latent markets for scandium oxide and aluminum-scandium master alloy – both commercial and military -- are quite large, and we are working with a number of potential scandium consumers and related technology companies interested in scandium. We will make announcements in this area as developments require. In general, we don’t comment on detailed commercial business strategies except in the course of necessary announcements and/or public filings. "

C) In addition to Niocorp’s collaboration with NanoScale. Is Niocorp currently working/engaged with other entities such as (Ames Lab, DoD, DoE, Chris Huskamp/Jabil & others) on Scandium Materials/patents?
Or on Niobium, Titanium, or Rare Earth future products (Oxides, Magnets…)
Please comment where possible.
***RESPONSE:

"There are multiple such engagements ongoing now for each product in our planned product offering. In general, we don’t comment on commercial business strategies except in the course of necessary announcements and/or public filings. "

D) Are other Entities besides EXIM Bank and Stellantis still interested as possible Debt/Equity finance or Anchor Investor/s partners moving forward?
Leading to a Final Elk Creek Finance package?
****RESPONSE:

"YES"

*******OCT. 14th,2024,- WHEN I ASKED JIM ABOUT THE MSP & Potential U.S. Govt. assistance. Judge for yourselves...
RESPONSE

"The Mineral Security Partnership is largely designed to encourage critical minerals projects in nations outside of the U.S. This is not an exclusive rule, but it clearly is the US State Department’s intent. These kinds of multilateral international processes tend to move relatively slowly given that several dozen various governmental bureaucracies across all participating nations get involved in these decisions. You can think of these multilateral efforts as operating like the United Nations … nothing really gets decided that quickly, and there will be an enormous amount of government oversight and regulation that will come to any project that secures funding through the Partnership.

****In contrast, we are a much faster track in seeking U.S. government assistance by working directly with the Export-Import Bank and other U.S. federal agencies. Not that anything moves as quickly as we would like when it comes to securing US government assistance for large projects like ours …" ******

*********NOTE: WORKING WITH EXIM BANK & OTHER U.S. FEDERAL AGENCIES!!!*********** "WHO ???????" !!!!!!!


****ON DEC. 4th, 2023, ~ Encouraged & happy to see forward progress on (TiCl4 /REE's) & the F.S. (early 2024 now) I asked Niocorp management to respond to the following Questions:
PLEASE SEE RESPONSES TO RELEVANT QUESTIONS SHARED BELOW:

JIM: Circling back - can you offer comment on the following: Back in June 2023
NioCorp Completes Geotechnical Drilling Campaign at the Elk Creek Critical Minerals Mine Site | NioCorp Developments Ltd.
A) Have those results been compiled & completed to date?
***RESPONSE

****"YES"

B) Does/Will Niocorp utilize the results the Geotechnical results & incorporate them into the new early 2024 F.S.? (Alongside recent announced Met/Program results being completed...)
***RESPONSE

******"YES"

GIVEN:
"The Company has shifted operations at its demonstration plant to produce sufficient quantities of TiCl4 for quality and purity testing by multiple prospective customers who have requested samples."

C) Are both Government & Private entities interested in (TiCl4 ~REE's production from the Elk Creek Resource?) Comment if possible....
***RESPONSE

********"There are multiple interested parties, but I cannot comment on who is interested in what."

D) I know .... you know what the last question might be LOL!😉.... "Are (SEVERAL Govt. & Private ENTITIES) ALL still interested????" Comment if possible..
***RESPONSE

*******"YES"

SEE NIOCORP/JIM SIM'S Responses given on Jan. 3rd, 2024 - to relevant questions asked Dec. 18th, 2023
1) Could NioCorp benefit from a possible DoD partial 2024 Feasibility Study funding option for critical minerals production once the 2024 NDAA is signed?
*RESPONSE:

"It would take too long to wait for government funding from this new initiative specific to the costs of updating our Feasibility Study. We are working on raising funds to complete that work now."

2) Could you offer comment on the new IRS tax credits for critical minerals covered under section 45x.
A) How would-could they benefit Niocorp’s crucial minerals moving forward?
RESPONSE:

"Fortunately, all of our proposed products are listed as eligible for the 10% production tax credit established in Section 45X Advanced Manufacturing Production Credit.
****The IRS is now looking to promulgate specific regulations on what can be included in the definition of production costs and on other issues, and we expect to submit comments to the IRS on some of these issues, either directly or in conjunction with comments that the National Mining Association (of which we are a member) will submit.
As to quantifying the benefits of this federal tax credit, that will depend upon how the IRS chooses to implement the governing regulations, including what is allowed to be included in the scope of production costs.
But, suffice to say, a 10% production tax credit for a project such as ours that has multiple critical minerals eligible for the credit could deliver very valuable and important economic benefits to the Project. "

B) How would-could these tax credits benefit future end users of Niocorp’s critical minerals utilized in the production & manufacturing of products moving forward.
*RESPONSE:

"The 45X production tax credit is currently limited to those companies that produce the critical minerals identified as eligible for the tax credit(s). The IRS has proposed to disallow use of the credit by companies that take those critical minerals and convert them into other products.
But, again, as with all federal tax law changes, one must wait for the final word on the implementing regulations to judge the value of these changes in the law. "

3) Do you foresee Niocorp possibly benefiting from other sections/amendments to the 2024 NDAA once signed into law once the project is financed. -T.B.D.
A) Such as the need to secure U.S. domestic supplies of Niobium , Scandium, Titanium & Rare Earth processing… ?
*RESPONSE:

*********************"Yes, as we were active in helping to shape the FY24 NDAA. "************************

B) The possibility of Niocorp becoming a DoD “Stockpile” supplier of domestically sourced critical minerals?
*RESPONSE:

"Yes, quite possibly. It depends upon product availability, pricing, and other factors at the time. "

C) Please comment if other possible/potential benefits exist. (If/ where you can..😜)

"NO COMMENT!😜"

4) Will an Investor Presentation with Q/A be forthcoming once Niocorp achieves certain milestones in early 2024?
*RESPONSE:

"YES"

"We periodically update our Investor Presentation when material developments or other news items make that appropriate."

FORM YOUR OWN OPINIONS & CONCLUSIONS ABOVE:

I speculate Several Govt. & Private Entites are interested & MAY very well be involved or Linked to establishing final TRANCHES of Finance to build out this project. Waiting for some of the DOTS to connect along with many. Of course I could be Dead Wrong!!!!
But As Always:
FOLLOW THE TRAIL- ....& form your own conclusions. " I like my D.D. & Q. & A. TRAIL, but others may see it totally different than I do...



Will post the updated DoE/LPO application Report when it posts for month of Dec. 2023....
Chico