NioCorp Developments Ltd. (“
NioCorp” or the
“
Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3)
announces recent developments regarding its Elk Creek Superalloy
Project (the “
Project”).
The Company reconfirms its current plan to issue a
press release conveying the top-level results of the Project
Feasibility Study (“Feasibility Study”) by the end
of the second calendar quarter of 2017. The NI-43-101
compliant report containing the details of the Feasibility Study is
expected to be released within 45 days of public release of the
Feasibility Study’s top-level results.
The Company announces that elements of the
Feasibility Study related to engineering and materials
characterization work have recently increased beyond earlier
estimates. The Company now estimates that the total cost of
completing the Feasibility Study has increased by approximately
US$0.8 million above the estimate provided in the Company’s
financial statements for the quarter ended March 31, 2017.
Total estimated cost of the Project Feasibility Study is
approximately US$33 million, of which approximately US$32 million
had been spent as of March 31, 2017.
As previously disclosed, the Company’s current
planned operational needs require additional financing. In
that regard, the Company previously announced a bought deal short
form prospectus offering of units on May 16, 2017 (the “May
2017 Offering”). The settlement of the May 2017
Offering, and the Company's receipt of proceeds therefrom, will not
occur until (i) the Company files a registration statement
with the United States Securities and Exchange Commission under the
Securities Act of 1933 to register the resale of the securities
underlying the units and (ii) such registration statement is
declared effective. Any delay in the settlement of the May
2017 Offering, or the Company's inability to settle the May 2017
Offering, could have a material adverse effect on the Company's
financial condition, results of operations, or prospects.
The Company announces that results from its mine
backfill material testing program have demonstrated backfill
strengths that exceeded the design criteria set as part of the Elk
Creek mine design. Backfill testing is the final material
testing program required prior to release of the Project’s
Feasibility Study. Backfill is used to fill voids that are
created by underground mining. NioCorp plans to utilize a
material comprised of waste material (“tailings”)
produced during the Superalloy production process combined with fly
ash and/or cement. Incorporating mining waste material into
backfill operations helps to reduce the amount of tailings that
have to be stored in above-ground impoundments. Updates to
capital expenditure and operating expenditure estimates included in
the October 2015 Preliminary Economic Assessment (“Oct.
2016 PEA”), however, depend upon a number of factors and
will not be determined until all remaining work is complete on the
Feasibility Study.
The Company reiterates its previously announced
expectation that it expects to receive U.S. Army Corps of Engineers
(USACE) authorization, on or before June 19, 2017, for construction
of all of the Project’s proposed 33-mile waterline from the Project
site to the Missouri River except the mine water outfall mechanism
to be located in the River. This waterline authorization is
expected to be granted under the USACE’s Section 404 Nationwide
Permit program, which does not require a case-specific
environmental analysis under the National Environmental Policy Act
(“NEPA”), such as an Environmental Assessment
(“EA”) or an Environmental Impact Statement
(“EIS”). The Company also reiterates that,
in line with previous announcements, its proposed underground mine,
surface processing facilities, and tailings impoundment are
estimated to result in zero permanent impacts to any federally
jurisdictional waters, and thus the Company does not anticipate a
need for a discretionary permit from the USACE or NEPA-level
analysis such as an EA or EIS.
The Company announces that it has been notified by
the USACE that additional authorization will be required under
Section 14 of the Rivers and Harbors Appropriations Act (33 USC
408) (Section 408) for the mine water outfall mechanism in the
Missouri River. The USACE’s Bank Stabilization and Navigation
Project (BSNP) includes a series of rock revetments located along
the banks of the Missouri River. The proposed outfall
structure would be constructed adjacent to these revetments.
Section 408 authorization is designed to ensure that the diffuser
structure does not adversely affect USACE regulated structures
currently in the River, such as these BSNP structures. The
408 authorization only involves the outfall structure itself, and
not the waterline’s discharged water, which is governed by State of
Nebraska permitting authorities. The 408 authorization may
require a case-specific environmental analysis, such as an EA or an
EIS, or it may be able to proceed under categorical exclusion
provisions in the USACE’s Section 408 program, which would not
require completion of either an EA or an EIS. NioCorp is
working with the USACE to determine how to most efficiently proceed
with this permitting process.
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Qualified Persons:
David Stone PE, of MineFill Services, Inc., a
Qualified Person as defined by National Instrument 43-101, is
responsible for the engineering of the Elk Creek project mine
backfill system, and has read and approved the technical
information contained in this news release.
Brian Osborn, BSc., CHMM, of Olsson Associates, a
Qualified Person as defined by National Instrument 43-101, is
responsible for the environmental permitting of the Elk Creek
project, and has read and approved the technical information
contained in this news release.
Source: NioCorp Developments, Ltd. @NioCorp
$NB $NIOBF #Niobium #Scandium #ElkCreek
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp
Developments Ltd., 720-639-4650, jim.sims@niocorp.com
About NioCorp
NioCorp is developing a superalloy materials
project in Southeast Nebraska that will produce Niobium, Scandium,
and Titanium. Niobium is used to produce superalloys as well as
High Strength, Low Alloy ("HSLA") steel, which is a lighter,
stronger steel used in automotive, structural, and pipeline
applications. Scandium is a superalloy material that can be
combined with Aluminum to make alloys with increased strength and
improved corrosion resistance. Scandium also is a critical
component of advanced solid oxide fuel cells. Titanium is
used in various superalloys and is a key component of pigments used
in paper, paint and plastics and is also used for aerospace
applications, armor and medical implants.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this document.
Certain statements contained in this document may constitute
forward-looking statements, including but not limited to the cost
to complete the Feasibility Study, the timing of the completion of
the Feasibility Study and the release date for the Feasibility
Study top-level results, the Company's ability to complete the May
2017 Offering and the receipt of USACE authorization for
construction of the Company's proposed waterline. Such
forward-looking statements are based upon NioCorp’s reasonable
expectations and business plan at the date hereof, which are
subject to change depending on economic, political and competitive
circumstances and contingencies. Readers are cautioned that such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause a change in such
assumptions and the actual outcomes and estimates to be materially
different from those estimated or anticipated future results,
achievements or position expressed or implied by those
forward-looking statements. . Risks, uncertainties and other
factors that could cause NioCorp’s plans or prospects to change
include risks related to the Company's ability to operate as a
going concern; risks related to the Company's requirement of
significant additional capital; changes in demand for and price of
commodities (such as fuel and electricity) and currencies; changes
in economic valuations of the Project, such as Net Present Value
calculations, changes or disruptions in the securities markets;
legislative, political or economic developments; the need to obtain
permits and comply with laws and regulations and other regulatory
requirements; the possibility that actual results of work may
differ from projections/expectations or may not realize the
perceived potential of NioCorp’s projects; risks of accidents,
equipment breakdowns and labor disputes or other unanticipated
difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in development programs; operating or
technical difficulties in connection with exploration, mining or
development activities; the speculative nature of mineral
exploration and development, including the risks of diminishing
quantities of grades of reserves and resources; and the risks
involved in the exploration, development and mining business and
the risks set forth in the Company’s filings with the SEC at
www.sec.gov. NioCorp disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise.
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