Vancouver, British Columbia – December 04, 2014 – NioCorp Developments Ltd. (“NioCorp” or the “Company”) [TSX-V: NB; OTCQX: NIOBF; and FSE: BR3] is pleased to announce that it has entered into a sponsorship agreement with Mackie Research Capital Corporation (“MRCC“) and will retain MRCC to provide strategic advice on several initiatives being analyzed by the Company.
NioCorp has entered into a sponsorship agreement with MRCC, as the Company is exploring the option of listing its securities on a more senior North America stock exchange. In consideration for its sponsorship services, MRCC will be paid a cash fee and issued 250,000 non-transferable compensation options (the “Compensation Options”). Each Compensation Option shall entitle MRCC to purchase a Unit at a price of $.60 per Unit. Each Unit will consist of one Common Share and one Warrant. Each Warrant will entitle MRCC to acquire one Warrant Share at a price of $.65 per Warrant Share for a period of 2 years from the date MRCC delivers its sponsorship report. There is no assurance that the Company meets the listing requirements of any senior exchange at this time.
The Company has also amended the terms of its financial services advisory agreement (the “Advisory Agreement“) with MRCC (previously announced in news releases dated July 31 and November 10, 2014). Under the revised terms of the Advisory Agreement, the Company reduced the number of broker warrants from one million broker warrants to 750,000 broker warrants (the “Broker Warrants“), of which 500,000 Broker Warrants will be issued upon TSX Venture Exchange acceptance and 250,000 Broker Warrants will be issued on the date the Company obtains a receipt from the British Columbia Securities Commission (as principal regulator) for a final short form prospectus pursuant to National Policy 11-202 and Multilateral Instrument 11-102. The Broker Warrants are exercisable into Units, having the same terms as the Units issued under the Company’s recent private placement offering.
“We believe that the Company is at a stage where it requires greater exposure, and are considering strategic plans to achieve that goal. The Company recently published an updated resource estimate for our Elk Creek deposit, completed a $10,585,197 private placement and recently hired an in-house investor relations officer. As we continue to rapidly develop the Elk Creek Niobium deposit, we hope to generate a greater investor interest in our story, and consequently analyst coverage, greater liquidity for our shareholders and capital raising ability for the Company. MRCC agrees with our near term strategic plans and we are excited to have them on board.” stated Mark Smith, CEO of NioCorp.
About the Company:
NioCorp is developing the only primary niobium deposit known to be under development in the United States, and the highest grade undeveloped niobium deposit in North America, located near Elk Creek, Nebraska. The Company has filed an updated NI43-101 compliant resource report, available on SEDAR, reporting an Indicated resource of 28.2 Million Tonnes grading 0.63% Nb2O5, containing 177 Million Kg’s of Nb2O5, and an Inferred resource of 132.8 Million Tonnes grading 0.55% Nb2O5, containing 733.7 Million Kg’s of Nb2O5, (at a 0.3% Nb2O5 cutoff grade). Niobium is mainly used in the form of Ferro-Niobium to produce HSLA (High Strength, Low Alloy) steel, to produce lighter, stronger steel for use in automotive, structural and pipeline industries. The U.S. imports 100% of its niobium needs.
For further information, contact Julie Champlin, Investor Relations Manager at (720) 639-4650 or at [email protected]
“Peter Dickie”
President, Corporate Secretary and Director
Cautionary Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.