NioCorp Developments Ltd. (TSE:NB) Files An 8-K Entry into a Material Definitive Agreement

NioCorp Developments Ltd. (TSE:NB) Files An 8-K Entry into a Material Definitive Agreement

Story continues below

Item 1.01

Entry into a Material Definitive Agreement.

On January 16, 2017, NioCorp Developments Ltd. (the Company) and
its Chief Executive Officer, Mark A. Smith, entered into a Credit
Facility Agreement (the Smith Credit Agreement) to which Mr.
Smith agreed to make available to the Company a credit facility
of up to $2,000,000. Under the Smith Credit Agreement, Mr. Smith
has agreed to advance amounts requested by the Company under the
credit facility (the Loan) up to the $2,000,000 maximum. The
credit facility is non-revolving and amounts paid back under the
terms of the Smith Credit Agreement do not again become available
for drawdowns at the request of the Company.

The Company will pay interest to Mr. Smith on amounts outstanding
under the Loan and on any overdue interest at a rate equal to 10%
per annum, calculated monthly in arrears, through to the date of
repayment of the Loan. Interest on the Loan will be computed on
the basis of a 360-day year comprised on twelve 30-day months.
Mr. Smith will also receive an establishment fee equal to 2.5% of
the amount of any drawdown payable at the time of the drawdown as
consideration of the advancement of such drawdown.

Any outstanding balance on the Loan, including accrued interest,
shall be immediately due and payable by the Company on the date
of termination of the Smith Credit Agreement on January 16, 2018
or upon the occurrence of an Event of Default (as described
below). The Company can pre-pay the Loan at any time without
notice and without penalty or prepayment fees.

Drawdowns under the Smith Credit Agreement must be made on a
business day before the termination date for a minimum amount of
$10,000 and not cause to total amount advanced to exceed
$2,000,000. Further, Mr. Smith must have received the written
drawdown request along with payment of the establishment fee.
Each drawdown request is subject to the consent of Mr. Smith,
which may be withheld in Mr. Smiths sole discretion.

Under the terms of the Smith Credit Agreement, the Company has
covenanted that so long as monies are outstanding under the Loan,
it will: (a) repay, or cause to be repaid, the Loan and all other
monies required to be paid to Mr. Smith in accordance with the
Agreement and (b) duly observe and perform all obligations and
agreement set forth in the Agreement.

The following occurrences will trigger and Event of Default under
the Smith Credit Agreement, causing the principal amount of Loan
outstanding, plus accrued interest, costs and all other monies
owing to Mr. Smith to immediately become payable upon demand by
Mr. Smith: (a) if the Company shall default in any payment of
principal, interest or other amount when the same is required
under the Smith Credit Agreement and such default has continued
for a period of seven (7) days after notice in writing has been
given by Mr. Smith to the Company regarding such default, (b) if
the Company shall become insolvent, make a general assignment for
the benefit of its creditors, or passes a resolution for the
winding-up, merger or amalgamation of the Company, or the Company
declares bankruptcy or a receiver is appointed under applicable
law, or a compromise or arrangement is proposed by the Company to
its creditors, or the occurrence of similar events (c) if the
Company defaults in observing or performing any other covenant or
agreement of the Smith Credit Agreement and such default has
continued for a period of seven (7) days after notice in writing
has been given by Mr. Smith to the Company regarding such
default.

to the Companys related party transaction corporate governance
policies, the Smith Credit Agreement was approved by the Companys
Audit Committee and the disinterested directors of the Board of
Directors.

The above is a summary of the material terms of the Smith Credit
Agreement and is qualified in its entirety by the complete terms
of the Smith Credit Agreement which is filed as Exhibit 10.1 to
this Current Report on Form 8-K and is hereby incorporated by
reference.

Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The disclosure regarding the Smith Credit Agreement contained in
Item 1.01 of this Current Report on Form 8-K is hereby
incorporated by reference into this Item 2.03.

On January 18, 2017, the Company completed a drawdown from the
credit facility under the Smith Credit Agreement in the amount of
$175,000.

Item 9.01. Exhibits.

Exhibit Description
10.1 Smith Credit Agreement


About NioCorp Developments Ltd. (TSE:NB)

NioCorp Developments Ltd. is an exploration-stage company. The Company is a mineral exploration/development company engaged in the acquisition, exploration and development of mineral properties. The Company operates through a segment consisting of exploration and development of mineral deposits in North America, specifically, the Elk Creek Niobium/Scandium/Titanium property (the Elk Creek Project) located in Southeastern Nebraska. The Company also holds an interest in a mineral exploration property located in Canada. The Company’s Elk Creek Project is a niobium and scandium exploration project that also contains titanium. The Elk Creek Project is located approximately 75 kilometers southeast of Lincoln, Nebraska, the state capital of Nebraska. The Company has not generated any revenues. Its subsidiaries include 0896800 BC Ltd., Elk Creek Resources Corp. and Silver Mountain Mines Corp.

NioCorp Developments Ltd. (TSE:NB) Recent Trading Information

NioCorp Developments Ltd. (TSE:NB) closed its last trading session down -0.010 at 0.700 with 102,341 shares trading hands.

An ad to help with our costs