Niocan lines up customers

Montreal-based Niocan (NIO-M) will distribute at least 25% of its ferroniobium in Europe, possibly begining at the end of 2001.

The company, which has signed an agreement with a leading ferro-alloy producer and distributor, says it will guarantee a minimum annual volume of 1.5 million lbs. contained niobium. No niobium prices were released.

The company is negotiating similar arrangements for North America and Asia in an effort to finance construction of a $90-million niobium mine and processing plant in Oka, west of Montreal. Annual production is pegged at 4,500 tonnes ferroniobium, which would contain 65% niobium (T.N.M., June 28-July 4/99). Reserves in two zones total 13.3 million tonnes grading 0.63% Nb2O5. In October, Niocan paid $435,000 for surface rights to a second and third property in the area, and signed an agreement-in-principle with Oka’s Cistercienne Abbey allowing for a right-of-way for tailings and water-recirculation lines.

The Fonds de Solidarite and two private investors exercised a total of 350,000 Niocan warrants, adding $227,500 to the company’s coffers.