NioDevelopments .(NB) - 2025 Q3 - Quarterly Report

Financing and Capital Needs - The Company closed an underwritten public offering on April 21, 2025, issuing 6,628,846 Common Shares at $2.60 per share, raising approximately $20.8 million in gross proceeds[89]. - The gross proceeds from the April 2025 Offering were approximately $20.8 million, with underwriting discounts and offering expenses of about $2.0 million[122]. - The Company is seeking up to $800 million in potential debt financing from EXIM, necessitating an updated feasibility study for the Elk Creek Project[92]. - The Company is in the process of securing EXIM financing for the Elk Creek Project, with its application currently under review[120]. - The planned expenditures for the Elk Creek Project over the next twelve months include an updated mine plan and capital costs related to the EXIM application process[121]. - The Company expects planned cash needs of approximately $23.0 million over the next twelve months for the advancement of the Elk Creek Project and corporate overhead costs[118]. - The Company has no further funding commitments or arrangements for additional financing at this time, creating uncertainty about its ability to secure future financing[124]. - The Company has incurred losses since inception and may not have sufficient cash to fund normal operations for the next twelve months without raising additional funds[125]. - The Company has limited financial resources compared to its proposed expenditures and no source of operating income[131]. - The development of the Elk Creek Project will require substantial additional capital resources, including near-term funding[133]. Elk Creek Project Developments - The Elk Creek Project has disclosed niobium, scandium, and titanium reserves, with ongoing studies to evaluate the economic viability of extracting rare earth elements[87]. - The Company extended option periods for land parcels related to the Elk Creek Project by approximately five years, with total payments of $113,000[90][91]. - A drilling campaign was launched on April 23, 2025, aimed at converting Indicated Resources into Measured Resources and Probable Mineral Reserves into Proven Mineral Reserves[92]. - The Company is developing a new production process that may include light and heavy magnetic rare earth oxides and plans to produce titanium in the form of titanium tetrachloride[93]. - The updated mine design for the Elk Creek Project will incorporate a twin ramp for access and a Railveyor system for material movement, replacing the previously planned vertical mining shafts[93]. - The Company is focused on securing project financing necessary for the construction and development of the Elk Creek Project[88]. - The Elk Creek Project is expected to create full-time and contract construction jobs during its development phase[81]. - The Company continues to negotiate and complete offtake agreements for niobium, scandium, and titanium production from the Elk Creek Project[94]. Financial Performance - The Company reported total operating expenses of $11.47 million for the nine months ended March 31, 2025, compared to $6.89 million for the same period in 2024, reflecting a significant increase[96]. - The net loss attributable to the Company for the nine months ended March 31, 2025, was $10.56 million, compared to a net loss of $7.82 million for the same period in 2024[96]. - Employee-related costs for the nine months ended March 31, 2025, were $2.53 million, a decrease from $3.18 million in the same period in 2024[96]. - The Company had cash of $1.3 million and working capital of $0.3 million as of March 31, 2025, compared to cash of $2.0 million and a working capital deficit of $9.0 million on June 30, 2024[117]. - Operating activities consumed $5.9 million of cash during the nine months ended March 31, 2025, reflecting funding of losses of $8.0 million[128]. - Financing inflows were $5.2 million during the nine months ended March 31, 2025, compared to $3.5 million in 2024, with gross receipts of $11.0 million from equity offerings[129]. Risks and Challenges - The Company is evaluating the impact of inflation, supply chain issues, and geopolitical unrest on the Elk Creek Project's economic model[81]. - The Company is exposed to commodity price risk related to elements associated with the Elk Creek Project, which is not currently in production[140].