NioCorp Developments increased its existing non-revolving credit facility with Mark A. Smith, the company’s CEO and executive chairman, to $3.5 million from the previous limit of $3 million. The company also received an extension of the maturity date for loans made under the credit facility to Dec. 15, 2020, from the previous maturity date of June 16, 2020.

In conjunction with the extension of the maturity date of the credit facility, Smith agreed to extend the maturity date of an existing $1 million loan to the company that was initiated in June 2015 to Dec. 15, 2020.

Funds drawn on the credit facility will assist the company in continuing its work to secure project financing for the Elk Creek Project and move the project to a construction start once project financing is secured.

“I am pleased to report that while the COVID-19 pandemic temporarily halted processes in some areas of our project finance effort, progress has once again resumed,” Smith said. “There can be no guarantee of success in any of the financing tracks we are currently pursuing, but we believe that our continuing success in further de-risking the project has been very helpful to the process.”

The credit facility bears an interest rate of 10%, is secured by the company’s assets pursuant to a general security agreement and is subject to a 2.5% establishment fee. Smith’s 2015 loan is structured under those same terms.

The credit facility is subject to Toronto Stock Exchange approval and is a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101). Because the value of the credit facility is less than 25% of NioCorp’s market capitalization, it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

NioCorp is a developer of superalloy materials.