Niocorp Developments Ltd. (OTCMKTS: NIOBF) Files Confidential Treatment Orders


Niocorp Developments Ltd. (OTCMKTS: NIOBF) shares dipped 0.16% on Monday to $0.619 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.37 to $0.87. The company has a market cap of $111.96 million at 180.58 million shares outstanding.

Niocorp Developments Ltd is a mining company that is developing North America’s only niobium, scandium, titanium project. The company is located in Elk Creek, Nebraska as its project in the area is the highest grade niobium project in North America, as well as the largest prospective producer of scandium in the world. The company aims to  emerge as the United States’ only producer of niobium and scandium, which are unique and valuable superalloy materials strategic and critical to many industries and national defense technologies.

This week, Niocorp Developments Ltd filed a Confidential Treatment Order with the SEC. This filing indicated that the company submitted an application under Rule 406 requesting confidential treatment for information it excluded from the Exhibits to a Form S-1 filed on September 2, 2016.  The company noted that this information qualifies as confidential commercial or financial information under the Freedom of Information Act, 5 U.S.C. 552(b)(4) and that the Division of Corporation Finance has determined not to publicly disclose it.

This filing had investors buzzing about what it might pertain to, with some speculating that it fulfilled requests from some already existing contract holders involving different types of contracts, offtakes, land agreements, etc. Some say that it refers to the previous two off take agreements which were subject to non-disclosure and were simply triggered by a new requirement from the SEC. Either that or a negotiated financial agreement is in play, making the stock worth watching closely.

In other news, Niocorp Developments Ltd announced in a press release that County Commissions in all four Southeast Nebraska counties involved in NioCorp’s proposed Elk Creek Project waterline have expressed preliminary public support for the waterline. This will increase the state’s contribution to Missouri River water flows and may deliver an added water resource to downstream agriculture and other water consumers.

We are very pleased with the initial reception by local Nebraska leaders to the Elk Creek waterline concept,” said Mark Smith, Niocorp Developments Ltd Executive Chairman and CEO. “Scott Honan and his team have worked very hard to minimize its potential impact on multiple levels.  We examined three main alternatives for the route as well as a number of sub alternatives to each main alternative.

Smith added that the alignment they intend to propose in their final feasibility studyis one that avoids paved roads as well as minimizes impacts to waterbodies and wetlands, also maximizing the use of existing rights of way as much as possible. He concluded by saying that the company continues to work on completing the necessary environmental surveys for this preferred alignment.

On the daily time frame, it can be seen that Niocorp Developments Ltd stock is currently testing support at $0.600, which happens to be the bottom of a descending triangle pattern. A break below this support area could take it to the next floor at $0.400 while a bounce could lead to a test of the triangle resistance or perhaps an upside breakout from consolidation.

As it is, the stock seems to be trading at a strong floor, which could draw more buyer interest and provide an opportunity to establish bullish positions at a significant support level.

DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.