Replies to post #112912 on Niocorp Developments Ltd (NB)

[SpecialK2020]

Jeunke,

Thank you for posting Jim's reply and I appreciate him providing more insight into the process.

I must say, this process is becoming a bit tiresome as the goal posts continuously shift. I don't think anything is intentionally hidden by Niocorp, just that they are thrown curveballs they did not expect to encounter during the EXIM DD process. I continue to hold (not buy) because of my, perhaps misguided, faith in the project and for the fact that I'm underwater on my investment as we dip into the $2s.

With that said, my main question back to Jim would be: "That's all fine and well that we are making progress with EXIM, but this does not solve or account for our financial difficulties to keep the lights on and continue with this work over the next 9 months. What is our plan to satisfy that requirement?"

[LCP77]

Jim: “ EXIM is leaning to the conservative side here, but that is understandable given their limited history in financing large-scale mining projects”

Makes me laugh. Financiers with mining experience haven’t touched this with a ten foot pole.

More snake oil.

[chico237]

Jeunke22 Appreciate you sharing your responses here on this board! It ties in nicely with those I received/shared on May 21, 22nd (Earlier this year 2024) & from my notes from the Niocorp June 5th 2024 presentation. (SEE BELOW)
Some of my Notes from JUNE 5th Presentation:
Mark Smith- During the presentation (JUNE 5th 2024) stated - EXIM does not need to see a completed F.S. for the contract (Term Sheet) to conclude. Also, the Feasibility Study & EXIM process can/are running in parallel; & that Niocorp was making every effort to complete the F.S. ASAP. With the project still pending Finance Debt/Equity to move forward.
Scott Honan - During the presentation (JUNE 5, 2024) - Mentions that additional Geo/Hydrological work, a complete Re-Engineering of design, Final "ORE" calculations along with Process Flowsheet all "Need to be completed at the Feasibility Study Level & validated" (Including the RailVeyor.)
Along with other relevant factors, among which Scott Stated that approx. 9 more months "might be needed" to complete said F.S
Per Juenke's RESPONSE:

Everything required for an updated FS should take about 9 months total to complete although, as Scott mentioned, there will be a large effort to accelerate that timeline as much as possible.

Niocorp will need some extra drilling work done for EXIM (12 weeks) to infill REE
Per Juenke's RESPONSE:

The additional drilling to convert a portion of our Probable Reserves to Proven Reserves is being requested by EXIM. Often, commercial banks will not require this, as Proven and Probable reserves are considered reserves against which debt financing can be done. EXIM is leaning to the conservative side here, but that is understandable given their limited history in financing large-scale mining projects and given that our Project is one of, if not the largest single prospective loan currently in EXIM’s new Make More in America initiative.
The additional drilling would probably take 12 weeks in the field, with the follow-on resource and reserve update analysis to be completed by independent consultants. Other elements of the FS update, such as updated engineering for our improved process flow sheet and the railveyor/electrified approach to the mine, can continue on a corollary path. And, EXIM loan due diligence processes will continue to advance during the pendency of this work.

Mark Smith Stated: Niocorp was in D.C. on Thursday & Friday (This week) again....
Per Juenke's RESPONSE:

EXIM’s additional requirement on drilling was made in the spirit of putting them more solidly in the position of providing us with debt financing. We welcome that. We are working closely with EXIM staff and leadership, and with the excellent JPMorgan team, and the effort continues to move in the right direction.
There is also very strong and bipartisan political support for the Project in Congress and across the Executive Branch. While EXIM will craft a financing package based on the merits, economics, and determination of the Project's ability to repay the debt, this political support helps a great deal. Without it, projects such as this do not tend to be seriously considered for such large amounts of government support.

From My Responses ON MAY 22, 2024 Response from Jim/Niocorp:

We did examine option of a twin ramp design early in the process for the Project (as part of our initial FS in 2017). That examination also included an open pit design as well as the currently planned two-shaft design. At that time, shafts made more sense given that the Railveyor technology hadn't matured sufficiently at that point to provide us with sufficient confidence to pursue that path. Now, with Railveyor systems having operated in working mines for 5 years or more, the technology is proven and is a live option for the Project.

I can't provide any timing estimate for completing the engineering required to shift to a Railveyor system in place of shafts, but we do not anticipate that making this shift will delay completion of the FS.

EXIM will examine all elements of the Project before the EXIM Board makes a final determination on our financing. While I cannot predict this with certainty, I'm fairly confident that they would look at this design change (should we elect to go the Railveyor route) very positively.
All the best,
Jim

FORM YOUR OWN OPINIOINS & CONCLUSIONS ABOVE:

Looks Like Everything remains "ON TRACK!" IMHO.... However the "TRACK" does not go on forever... & the Train needs to get to the station on time this YEAR 2024! Let's Go Niocorp!!
Waiting for material NEWS with many.

Chico

[ge11]

Does this increase the value of Elk Creek Project for the new FS?

The additional drilling to convert a portion of our Probable Reserves to Proven Reserves is being requested by EXIM.