NioCorp signs non-binding deal with Traxys for critical minerals offtake

NioCorp Developments Ltd. (NASDAQ: NB) announced it entered into a non-binding agreement with Traxys North America LLC for a long-term marketing and offtake arrangement covering the company's remaining planned critical minerals products from its Elk Creek Critical Minerals Project.

The agreement would position NioCorp to sell all of its planned critical minerals products for the first 10 years of operation if a definitive contract is executed. The company has already contracted 75% of its planned ferroniobium production and 12% of its planned scandium oxide production.

Under the proposed arrangement, Traxys would serve as the exclusive global marketing partner for products including ferroniobium, niobium pentoxide, scandium oxide, scandium metal, aluminum-scandium master alloys, titanium dioxide, and potentially various rare earth elements. The term sheet expands Traxys's current agreements covering 25% of planned ferroniobium production and up to 12% of planned scandium production.

The agreement also contemplates a potential strategic equity investment by Traxys of up to $30 million in NioCorp, subject to due diligence and execution of definitive agreements.

"Together with our existing offtake agreement with ThyssenKrupp for 50% of our planned ferroniobium production during the first 10 years of operations, a definitive deal with Traxys would lead to the sale of all our remaining planned products for the first 10 years of operations," said Mark A. Smith, CEO and Executive Chairman of NioCorp.

Products would be priced at current market rates with standard deductions for marketing, logistics, and financing costs. Ferroniobium volumes would be subject to take-or-pay obligations, while other products would be marketed on a best-efforts basis.

Traxys participates in Project Vault, an initiative backed by the Export-Import Bank of the United States aimed at strengthening U.S. critical minerals supply chains. NioCorp is working with the Export-Import Bank on potential debt financing for its Elk Creek Project.

The companies plan to negotiate definitive agreements, though there is no guarantee these will be signed or that transactions will be completed.

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