NioCorp Developments (NB-T) June 15, '16 announces that it has entered into a commercial sales agreement with CMC Cometals, a division of Commercial Metals Company (“CMC”) of Fort Lee, New Jersey, under which CMC expects to purchase up to a maximum of 1,875 tonnes per year, or roughly twenty-five (25%), of NioCorp's potential annual Ferroniobium production from its Elk Creek, Nebraska resource. Under the Agreement, CMC will purchase this amount of Ferroniobium under a market-based pricing structure and for an initial 10-year term, with an option to extend beyond that period upon mutual agreement of the parties.
CMC and its subsidiaries manufacture, recycle, and market steel and metal products and related materials and services through a network including steel mini-mills, steel fabrication and processing plants, construction-related product warehouses, metal recycling facilities, and marketing and distribution offices in the United States and in strategic international markets.
NioCorp has granted CMC exclusive marketing rights for its Ferroniobium product in North America, Commonwealth of Independent States, South Africa, and certain territories in Asia.
“We are very pleased to have entered into this commercial sales agreement with CMC Cometals for one quarter of our planned Ferroniobium production over our first 10 years of production,” said NioCorp Executive Chairman and CEO Mark Smith. “I have worked with this outstanding company for many years, and I look forward to continuing a strong and mutually beneficial relationship with CMC in the years ahead.”
Eliezer "Eli" Skornicki, President of CMC Cometals, stated: “Ferroniobium is an increasingly vital steel additive for manufacturers around the world. Its increasing utilization is helping a variety of industries deliver stronger, lighter, and more energy efficient products and projects to their customers and to end-use consumers. We believe there is a very bright future for ferroniobium in global markets and are excited about our partnership with NioCorp.”
“Coupled with our success in 2014 of placing under contract 50% of our potential Ferroniobium production to ThyssenKrupp Metallurgical Products GmbH of Germany, this new contract means that we have effectively sold 75 percent of our potential primary product from Elk Creek,” Mr. Smith said. “This further de-risks our project and will strengthen our ability to attract the project capital needed to bring this project into commercial operation.”
Mr. Smith added: “The fact that these commercial sales contracts have been executed with such leading players in international steel markets prior to completion of the Elk Creek definitive feasibility study demonstrates how strongly the market values this extraordinary superalloy material. I believe it also underscores the confidence that major ferroniobium consumers have in the NioCorp team’s ability to deliver on the tremendous promise of the Elk Creek resource.”
On behalf of the Board of Directors:
NioCorp Developments Ltd.
“Mark Smith”
Mark Smith, CEO, Executive Chairman, and Director
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 can be combined with Aluminum to make super-high-performance 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 has extensive uses in aerospace, defense, transportation, medical, and other applications. It also is a key component of pigments used in paper, paint and plastics.
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