NioCorp announced a non‑binding term sheet with Traxys North America LLC for a long‑term marketing and offtake arrangement of its planned critical‑minerals output from the Elk Creek Project. The term sheet covers the first ten years of operation and would allow NioCorp to sell all of its planned ferroniobium, scandium oxide, and titanium products during that period.
The agreement also opens the door for Traxys to invest up to $30 million in NioCorp, providing capital that could support the project’s financing needs. Traxys’ involvement is part of its broader participation in the U.S. government’s Project Vault, which seeks to secure a domestic supply of critical minerals.
NioCorp already has offtake agreements that cover 75 % of its planned ferroniobium production (25 % with Traxys and 50 % with ThyssenKrupp) and 12 % of its planned scandium oxide production (entirely with Traxys). The new term sheet would cover the remaining 25 % of ferroniobium on a take‑or‑pay basis, the remaining scandium on a best‑efforts basis, and 100 % of all other planned products, effectively de‑risking the commercial side of the Elk Creek Project.
“Upon execution of definitive agreements with Traxys, we believe that this initiative moves NioCorp closer to securing full project financing for the Elk Creek Project. Together with our existing offtake agreement with ThyssenKrupp for 50 % of our planned ferroniobium production during the first 10 years of operations, a definitive deal with Traxys would lead to the sale of all our remaining planned products for the first 10 years of operations,” said Mark A. Smith, CEO and Executive Chairman of NioCorp.
“The Elk Creek Project represents a key future source of critical minerals for U.S. and allied markets. The United States currently has no primary domestic production of niobium or scandium. Aside from limited production of the magnetic rare earths neodymium and praseodymium, the U.S. remains 100 % dependent on foreign producers of heavy magnetic rare earth elements. Bringing new domestic supplies of these critical minerals into the market is strategically and commercially vital for the United States. Expanding our marketing role with NioCorp further supports that goal,” said Mark Kristoff, CEO of Traxys.
The Elk Creek Project is positioned as North America’s only niobium, scandium, and titanium critical‑minerals mine and processing facility, holding the highest‑grade niobium resource in the region and the second‑largest indicated rare‑earth resource in the United States. By securing a comprehensive offtake arrangement, NioCorp is moving closer to obtaining the project financing it needs to bring the mine into production, a milestone that has been delayed from the original January 2023 commercial‑production target.
Analysts and investors view the agreement as a significant step toward de‑risking the Elk Creek Project’s commercial outlook. The potential $30 million investment from Traxys, combined with the full‑year offtake coverage, is expected to strengthen NioCorp’s position in negotiations with lenders and export‑credit agencies such as the U.S. Export‑Import Bank.
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