Replies to post #107055 on Niocorp Developments Ltd (NB)

[Prudent Capitalist]

It is not the Offtake agreement, but rather the Equity investment, which requires extensive involvement of Attorneys, CPA's (new firm now) and perhaps investment bankers, etc, and I believe all parties want to close both items as a package.

[The_Gman]

My guess would be the FS, which should have been completed some time ago. The Stellantis agreement specifically says:

The objective is to enter into a definitive rare earth supply agreement to support Stellantis’ commitment to build resilient supply chains and reach carbon net zero by 2038 and to help accelerate NioCorp’s path to commercial production of magnetic rare earth oxides in the U.S.

The Term Sheet executed today envisions a definitive agreement for a 10-year offtake contract for specific amounts of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide that NioCorp aims to produce at its Elk Creek Critical Minerals Project (the “Elk Creek Project”) in southeast Nebraska, subject to the receipt of adequate project financing.

Scandium is not a magnetic REE and is not identified in the Term Sheet. The magnetic REE capacity is not addressed in the existing FS but will be in the new one. It also says, "subject to the receipt of adequate project financing." That doesn't exist yet.

The entrance into a binding off-take agreement is subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, the negotiation of definitive documentation, and customary closing conditions, including regulatory approvals.

Is the Edison report part of the due diligence?

What comes first, the chicken or the egg?

https://www.stellantis.com/en/news/press-releases/2023/july/stellantis-and-niocorp-sign-rare-earth-offtake-term-sheet-in-support-of-stellantis-commitment-to-reaching-carbon-net-zero-by-2038