NioCorp Locks 100% Offtake for Elk Creek, Adds Traxys Take-or-Pay
NB is trading near its 52-week low of $3.25 (3.1% above the low).
Summary
NioCorp signed a 15-year take-or-pay deal with Traxys covering 50% of planned ferroniobium output, with Traxys also getting exclusive marketing rights for scandium, titanium, and rare earths. Combined with ThyssenKrupp's existing 10-year agreement for the other 50% of FeNb, all planned Elk Creek production is now under offtake agreements. The deal includes a potential Traxys equity investment of up to $30M, though that is not committed. This de-risks revenue for lenders and directly supports the company's EXIM financing review, a key step toward project construction. The 10-K filed September 25 disclosed a $708M capex increase to $1.85B and a material weakness in internal controls, making financing progress critical.
At the time of this announcement, NB was trading at $3.35 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $478.4M. The 52-week trading range was $3.25 to $12.58. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.