NioCorp has signed a commercial sales agreement with Traxys North America. Under the agreement, Traxys is obligated to purchase 12 tonnes of Sc over the course of Elk Creek’s first 10 years of production. Additionally, 75% of the Elk Creek Project’s primary product, Ferroniobium (FeNb), is under contract over the first 10 years of production: thyssenkrupp (OTC: TYEKF), 50%; Commercial Metals Company, 25%
Fahy Capital Management is not an investor in NioCorp. We may, however, initiate a position in thyssenkrupp this quarter.
Gustavson’s August 2019 revisions to the Round Top PEA had a negligible impact on Fahy Capital Management’s independent analysis. In fact, the updated PEA is more in line with our own assumptions. Consequently, we don’t feel compelled to revise our expectations.
Once approved by the Federal Permitting Improvement Steering Council (FPISC), Texas Mineral Resources’ Round Top Project will be fast-tracked into construction. The Round Top Project has been classified as “high priority to the nation” and will be granted preference in the licensing process under Executive Order 13766.
The heap-leachable Round Top Project, which has a low CapEx and OpEx, contains a high percentage of REOs strategically critical to the U.S. defense, clean energy, aerospace, supercomputing, and transportation sectors.