- NioCorp Developments Ltd. (NB, Financial) received a preliminary, non-binding Expression of Interest (EOI) from UK Export Finance (UKEF) for a potential debt guarantee of up to $200 million.
- The UKEF guarantee is contingent upon securing offtake agreements with UK-based companies.
- The financing strategy involves coordination with U.S. and German export credit agencies.
NioCorp Developments Ltd. (NASDAQ:NB) has announced a preliminary, non-binding Expression of Interest (EOI) from UK Export Finance (UKEF) for a potential debt guarantee of up to $200 million. This EOI aims to support the construction of the Elk Creek Critical Minerals Project, signaling an important milestone in NioCorp's strategic financing efforts.
The proposed UKEF guarantee would complement existing financing channels NioCorp is pursuing. This includes potential debt financing from the Export-Import Bank of the United States (EXIM) and a possible loan guarantee via Germany's Untied Loan Guarantee Program. This multi-national financing approach aims to build a diversified and robust financial structure for the project.
To secure the UKEF guarantee, NioCorp must fulfill several conditions, including the execution of offtake agreements with companies based in the UK. These agreements are critical for demonstrating the project's support for UK exports. NioCorp is currently engaged in discussions over potential sales of scandium-based products, focusing on establishing solid end-market commitments.
Despite these promising developments, it is important to note that the UKEF's EOI is non-binding and subject to standard project finance terms and comprehensive due diligence. The integration of multiple export credit agencies suggests a complex but promising financing strategy, though significant efforts are still required to finalize construction financing.
