CENTENNIAL, Colo., Oct. 4, 2022 /PRNewswire/ — Automotive and other manufacturers should not count on sufficient supplies of rare earths and other critical minerals coming from China, because China is increasingly consuming its own production for electric vehicles and other technologies that use permanent rare earth magnets, Mark A. Smith, CEO and Executive Chairman of NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX: NB; OTCQX: NIOBF) said during an appearance Monday on Fox Business News.
“Rare earth minerals are very, very important, and the majority of the rare earths in the world today are coming out of China,” Mr. Smith said. “Well, that’s fine, except China’s making a whole bunch of EVs. Now we want to make EVs. And there isn’t going to be enough rare earths coming out of China to feed all of those EVs that we want.”
Ms. Claman asked Mr. Smith whether large automotive manufacturers and other potential customers are inquiring about the critical minerals that NioCorp intends to produce at its Elk Creek Critical Minerals Project in southeast Nebraska, once sufficient project financing is obtained to allow the Project to proceed.
“Who’s approaching you right now? Who wants these minerals? Is the word out?” Ms. Claman asked.
“The word is out,” Mr. Smith responded. “You’ve seen the reports about the automobile companies, the steel companies, going out and searching for these minerals. They can’t find enough of these minerals. So, we are in discussions with some of the top automotive companies, the top steel companies in the world, because they want to put their procurement programs together, 10, 15, 20 years out. We’re happy to talk to them.”
Mr. Smith also commented on NioCorp’s recent announcement of its signing of a definitive agreement (the “Business Combination Agreement”) for a proposed business combination between NioCorp and GX Acquisition Corp. II (“GXII”) (Nasdaq: GXII). Under the Business Combination Agreement, NioCorp will acquire GXII, a U.S.-based special purpose acquisition company, and intends to be listed on the Nasdaq Stock Exchange soon after the acquisition closes, which is expected in the first quarter of 2023, subject to the approvals of both the NioCorp shareholders and the GXII shareholders at to-be-called special shareholder meetings and other customary closing conditions. NioCorp shares will also continue to be traded on the Toronto Stock Exchange. The proposed transaction values the combined entity at an estimated enterprise value of $313.5 million.
