Niocorp Developments Ltd. · NASDAQ:NB
Niocorp Developments — SPAC Merger (October 2022)
46 slides from Niocorp Developments's SPAC merger presentation, Oct 11, 2022
Slide 1: NioCorp: Critical minerals for U.S. supply chain security
NioCorp: Critical minerals for U.S. supply chain security OUR MISSION: To accelerate the transition to a lower carbon economy by serving as a reliable U.S. supplier of sustainably produced critical minerals.
Slide 2: Disclaimers & Technical Disclosures
Disclaimers & Technical Disclosures Legal D i sc l a i mers This investor presentation (this “Presentation”) is dated as of October 7, 2022 and contains information of NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX: NB; OTCQX: NIOBF) and GX Acquisition Corp II (“GXII”) (Nasdaq: GXII). T
Slide 3: Disclaimers & Technical Disclosures
Disclaimers & Technical Disclosures N o Of f e r o r S o lici t a ti on This Presentation and the information contained herein do not constitute (i) (a) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Transaction or (b) an offer to sel
Slide 4: Disclaimers & Technical Disclosures: Financial Information; Non-GAAP Measures
Disclaimers & Technical Disclosures F i nanc i a l Informat i on; Non - G AAP Mea s ures Certain financial information and data included in this Presentation is unaudited and may not conform to Regulation S - X. Such information and data may not be included in, may be adjusted in or may be presented
Slide 5: Transaction Overview
Transaction Overview ◉ Deal represents an Enterprise Value of $313.5 million, reflecting an 89% discount to the Net Present Value (NPV) in the Elk Creek Project 2022 Feasibility Study. ◉ Business combination is expected to close in Q1 2023, subject to satisfaction of closing conditions. ◉ NioCorp is
Slide 6: Sustainable Development Enabling The Energy Transition
Sustainable Development Enabling The Energy Transition Providing Supply Chain Security Energy Efficiency & Emissions Reduction OUR MISSION : T o Accelerat e The Global T ransitio n to Low - Carbon Economy “Our goal is to make North America less dependent on foreign suppliers for the critical mineral
Slide 7: Management Team
Management Team Mr. Honan joined NioCorp in 2014. He has 29+ years of experience in the niobium, base metals, gold and rare earth industries. He served as General Manager and Environmental Manager and Vice President Health, Environment, Safety and Sustainability at Molycorp. Scott is a graduate of Q
Slide 8: Niobium Scandium Value Proposition: Transition to Net Zero Driving Demand
Niobium Scandium Value Proposition: Transition to Net Zero Emissions is Driving Demand Growth for the Critical Minerals at the Focus of NioCorp 1 1 Subject to receipt of necessary project financing and commencement of operations at the Elk Creek Project. 2 Indicated mineral resource, based on data f
Slide 9: Markets
MARKETS 9
Slide 10: The Problem
The Problem Lack of secure and reliable long - term supply is preventing fulfilment of latent market demand and realization of environmental benefits resulting from existing applications and from significant new technologies. This is due to: ◉ Concentrated sources of supply for Niobium, Scandium, an
Slide 11: The Solution: Reliable, Low-Risk U.S. Supply
Reliable, Low - Risk U.S. Supply is Key to Securing Energy Transition The Solution ◉ Significant production volumes planned for Niobium, Scandium, Titanium from a low - risk jurisdiction. 1 NioCorp is also conducting technical and economic analyses on the potential addition of magnetic rare earth ox
Slide 12: Niobium: A Critical Supply Risk To The U.S.
NIOBIUM: A Critical Supply Risk To The U.S. Niobium ◉ 88% of the world’s Niobium is produced in only one country 1 – Brazil – which increases supply chain risk and has forced the U.S. Government to stockpile Niobium . ◉ Market growth is expected to rise sharply with the expected use of niobium in ne
Slide 13: Scandium: Limited Supply But Very Large Latent Demand
SCANDIUM: Limited Supply But Very Large Latent Demand Scandium ◉ Forecast demand (117 tpy by 2026) greatly exceeds current supply (25 tonnes/year) 1 and exceeds NioCorp’s potential annual scandium production. ▪ Solid oxide fuel cell use of Scandium ( ⋍ 22 tpy) forecast to grow at 23% CAGR 1 ▪ Aerosp
Slide 14: Magnetic Rare Earths: Global Demand to Grow 3X by 2035
MAGNETIC RARE EARTHS: Global Demand to Grow 3X by 2035 1 Magnetic Rare Earth Elements ◉ NioCorp is currently conducting technical and economic analyses on the potential addition to its planned product suite of three magnetic rare earth oxides: NdPr, Dy, and Tb. ◉ Global magnetic REE oxide consumptio
Slide 15: U.S. Government: The Products NioCorp Intends to Produce Are Critical
U.S. Government: The Products That NioCorp Intends to Produce 1 Are Critical ◉ All of NioCorp’s planned products have been singled out as “critical minerals” by the U.S. Government. ◉ The products NioCorp intends to focus on – including potentially rare earths 2 – include the top 3 most critical min
Slide 16: The Asset
eS Nineor Critical Mineral Security meorr THE ASSET
Slide 17: A Shovel-Ready Pure-Play Critical Minerals Project
1 Subject to receipt of necessary project financing and commencement of operations at the Elk Creek Project. 2 Indicated mineral resource. Based on data from the “Critical Mineral Resources of the United States — Economic and Environmental Geology and Prospects for Future Supply,” U.S. Geological Su
Slide 18: Critical Minerals in the Elk Creek Resource
Critical Minerals in the Elk Creek Resource 1 1 Based on the 2022 NI 43 - 101 Elk Creek Technical Report. See “Mineral Reserves and Resources” in the Disclaimers & Technical Disclosures at the beginning of this presentation. 2 NioCorp is currently conducting technical and economic analyses on the po
Slide 19: Offtake Agreements for Products NioCorp Intends to Produce
Offtake Agreements for Products NioCorp Intends to Produce 1 Th y ssenKrupp Metallurgical Products 2 CMC Cometals 3 50% of NioCorp’s planned ferroniobium production for first 10 yrs. 1 Pricing set at 3.75% discount to Argus Metals index pricing for ferroniobium 25% of NioCorp’s planned ferroniobium
Slide 20: Progression to a Highly De-Risked Critical Minerals Project
Progression to a Highly De - Risked Critical Minerals Project • Total drilling: 68,334 meters (42 miles) • Resource dimensions: 830 meters strike, 500 meters wide, 850 meters dip • Majority (~90% ) of resource is under NioCorp - owned property; the remainder is under optioned property to the West •
Slide 21: World Class Development Partners
NioCorp’s global team includes some of the world’s best in their fields. World Class Development Partners Surface Processing Facilities EPC Mine Development EPC Geology Mineral Resource Process Development Project Permitting Mineral Reserve 21
Slide 22: Elk Creek Positioned to Become America's Second Major Rare Earth Project
Elk Creek Positioned to Become America’s Second Major Rare Earth Project 1 MP Materials’ Mountain Pass Rare Earth Mine & Processing Facility, California • MP Materials project capitalized in part via combination with Fortress Value Acquisition Corp. • Only scaled site of its kind in the Western Hemi
Slide 23: The Project
Te Critical Mineral Security y | THE PROJECT
Slide 24: Elk Creek Project Location & Layout
Elk Creek Project Location & Layout • 105 km (65 miles) southeast of Lincoln, Nebraska (the state capital) • 129 km (80 miles) south of Omaha, Nebraska. • 3 miles west of Elk Creek, Nebraska and 6 miles south of Tecumseh, Nebraska. T a iling s 1 T a iling s 2 T a iling s 3 P o n d P o nd O re F i ll
Slide 25: Mineral Reserves and Mineral Resources
Highway 50 Highway 62 Carbonatite Boundary (~7,800 acres) Initial Operational Footprint (640 acres) Mineral Resource C l assifi c ati o n Cu t - o f f NSR (US$/t) Tonnage (0 00’ s M t) Grade ( N b 2 O 5 %) Grade (T i O 2 %) Grade (Sc g /t) Grade (T R EO % ) Indicated 180 188.8 0.51 2.24 60.06 0.34 I
Slide 26: Key Permits Obtained
The Elk Creek Project has secured key federal, state, and local permits required to proceed to the start of construction once project financing is obtained. ◉ Construction Air Permit secured from the State of Nebraska. ◉ A Special Use Permit secured from Johnson County, Nebraska, the key local land
Slide 27: Uses of Funds at Various Levels
U s e s o f Fund s a t Var i o u s Level s ( U S D m ill i on s) Cos t E l e m e n t $25 $100 $150 $285 Final Subsurface Water and Subsoil Characterization $11 $11 $11 $11 Exercise Additional Land Options $4 $4 $9 $9 Final Engineering Before Construction Start $2 $22 $39 $39 Site Preparation and Inf
Slide 28: Major Project Milestones Ahead
Major Project Milestones Ahead Completion of Demonstration Plant testing of optimized flow sheet and rare earth recovery rates Issuance of updated Feasibility Study incorporating rare earth production plans and expanded economics Exercise option - to - purchase agreements for additional land purchas
Slide 29: Strong State & Local Support
The Elk Creek Project is located exclusively on private land with extensive nearby infrastructure (roads, rail, water, and utilities). The Project enjoys strong community support as well as state and local government support. Nebraska Governor Pete Ricketts nominated the Project as a “National High
Slide 30: Nio
Nio Critical Mineral Security 30
Slide 31: Expected Mining Operations Designed with Sustainability in Mind
NioCorp’s Expected Mining Operations Designed from the Start with Sustainability in Mind ◉ Fully aligned with Equator Principles ◉ Zero process water discharge facility ◉ Additional protection of groundwater resources through artificial ground freezing and grouting ◉ Avoidance of permanent impacts t
Slide 32: Elk Creek's Expected Output Can Create Significant GHG Reductions
Elk Creek’s Expected Output Can Create Significant 5.7 - to - 1 GHG Reductions 1 Potential CO 2 Emissions Avoided Per Year: ~ 5,100 kt 1 Subject to receipt of necessary project financing and commencement of operations at the Elk Creek Project. 2 Source : N i ob i um. T ech (CBMM). 3 O n G C ommod it
Slide 33: Deal Overview
49 \ 8 28 4S 804.88 » ° \ 221.49 592 917 3.06 499 \ ¥ 30.55 211.27 46 4 TOR 47, 73 24,944 44 ax us 177.75 139.72 1437 178 9649, 301.34 trahe., 68 56677962663 XQ 58.17 185.21 48} 75 o7sel fe) ? 125.91 N 103.95 99.99 84.81 109 99.47 “Seeao0 Nio Critical Mineral Security " , ‘ 1) 6124 ee31.82 135.98 8.
Slide 34: Elk Creek Feasibility Study Results
$2.8B Pre - Tax NPV 29.2% Pre - Tax IRR $2.35B After - T ax NPV 27.6% After - T ax IRR $403M A veraged Annual EBITDA2 over Run of Mine 3 68% A veraged Annual EBITDA 2 Margin over Run of Mine 3 $21.9B Gross Revenue over Mine Life $10.9B After - T ax Cumulative Net Free Cash Flow 2 over Run of Mine 3
Slide 35: Project Expected to Deliver Significant Cash Flow Over Life
Project Expected to Deliver Significant Cash Flow Over 38 - Year Life 2022 Elk C reek Feasibility Study Economic Results (n ot i n c l u d ing RE E pr od u c ti on) (US$ Million s ) Pre - Tax Net Present Valu e (NPV ) ( 8% d i sc ount) $2,819 Pre - Tax Internal Rate of Return (IRR) 29.2% A f ter - T
Slide 36: Transaction Structure
Transaction Structure NOTES: The amounts from sources and uses may change based on the amount of public stockholder redemptions. Pro - forma ownership assumes the impact of all options and other dilutive securities on a fully diluted and net - share settled basis calculated according to the treasury
Slide 37: Investment Highlights
Low Carbon Economy Defense and Aerospace Mega - Infrastructure Investment Highlights Key customer relationships and offtake agreements Potential pure play exposure to critical mineral mega trends 1 Significant, rapidly growing total available markets Unique competitive position with large barriers t
Slide 38: Appendix
Niolorp Critical Mineral Securi
Slide 39: Elk Creek NI 43-101 Mineral Resource
Elk Creek NI 43 - 101 Mineral Resource 1 (M INERAL R ESOURCE AS OF D ECEMBER 8, 2021) Elk Creek 2022 In Situ Mineral Resource Estimate (niobium, titanium, and scandium) including reserves Classification N S R C utoff (US$/tonne) Tonnage (Mt) Grades Tonnages Indicated 180 188.8 N b 2O5 (% ) N b 2O5 (
Slide 40: Elk Creek NI 43-101 REE Mineral Resource
Elk Creek NI 43 - 101 REE Mineral Resource 1 Elk Creek 2022 In Situ Mineral Resource Estimate (rare earth oxides) including reserves Class NSR Cut - o f f Tonnage ( Mt) La2O3 ( %) La2O3 (k t) C e 2O3 ( %) C e 2O3 (k t) P r2O3 ( %) P r2O3 (k t) Indicated 180 188.8 0.0773 145.8 0.1335 251.9 0.0143 26.
Slide 41: Elk Creek S-K 1300 Mineral Resource
Elk Creek S - K 1300 Mineral Resource 1 (M INERAL R ESOURCE AS OF June 30, 2022) Elk Creek 2022 In Situ Mineral Resource Estimate (niobium, titanium, and scandium) excluding reserves Classification N S R C utoff (US$/tonne) Tonnage (Mt) Grades Tonnages Indicated 180 151.7 N b 2O5 (% ) N b 2O5 ( k t
Slide 42: Elk Creek S-K 1300 REE Mineral Resource
Elk Creek S - K 1300 REE Mineral Resource 1 Elk Creek 2022 In Situ Mineral Resource Estimate (rare earth oxides) excluding reserves Class NSR Cut - o f f Tonnage ( Mt) La2O3 ( %) La2O3 (k t) C e 2O3 ( %) C e 2O3 (k t) P r2O3 ( %) P r2O3 (k t) Indicated 180 151.7 0.0766 116.2 0.1320 200.2 0.0140 21.3
Slide 43: Elk Creek S-K 1300 Mineral Reserve
Elk Creek S - K 1300 Mineral Reserve 1 NOTES The Qualified Person for the Mineral Reserve estimate is Richard Jundis, P.Eng., of Optimize Group Inc. The estimate has an effective date of May 3rd, 2022. The Mineral Reserve is based on the mine design and mine plan, utilizing an average cut - off grad
Slide 44: Elk Creek S-K 1300 Mineral Reserve
Elk Creek S - K 1300 Mineral Reserve 1 Underground In Situ Mineral Reserves Estimate for Elk Creek Classification T on n a g e (Kt) Nb 2 O 5 G r ad e (%) Contai ne d N b 2 O 5 (t) Payabl e Nb (t) TiO 2 G r ad e (%) Contai ne d Ti O 2 (t) Payabl e Ti O 2 (t) Sc G r ad e (ppm) Contai ne d Sc ( t ) Pay
Slide 45: Feasibility Study: Indicated Economic Results
Feasibility Study: Indicated Economic Results 1 Ope r a ti n g Year 1 2 3 4 5 6 7 8 9 10 20 30 Production Niobium t - Nb 4,960 4,742 4,949 4,903 4,949 4,716 4,715 4,733 4,799 4,672 4,772 4,773 Scandium kg - Sc 2 O 3 116 114 113 109 112 109 105 102 101 101 102 107 Titanium t - TiO 2 13,063 12,120 12,
Slide 46: Contact
CON T ACT For More Information NioCorp Jim Sims Chief Communications Officer jim.sims@niocorp.com +1 (303) 503 - 6203 46