NioCorp Developments Ltd. (TSX: NB) (OTCQX: NIOBF) is pleased to announce that it has closed its previously announced non-brokered private placement of units of the Company. A total up-sized offering of 4,981,035 Units were issued at a price per Unit of C$0.96, for total gross proceeds to the Company of approximately C$4.8 million.
Pricing of the Units was set at a premium to the five-day Volume Weighted Average Price of NioCorp common shares just prior to the launch of the offering on June 13, 2022. The initial offering announcement on June 13, 2022, was for up to 4,519,481 Units, for gross proceeds of up to approximately C$4.35 million.
Each Unit consists of one common share of NioCorp and one common share purchase warrant. Each Warrant entitles the holder to acquire one Common Share at a price of C$1.10 at any time prior to July 1, 2024.
Proceeds of the private placement will be used for continued advancement of the Company’s Elk Creek Critical Minerals Project and for working capital and general corporate purposes.
The Company paid cash commissions of C$62,496 and 65,100 finder warrants to finders outside of the United States. The cash commission and finder warrants were each equivalent to three (3) percent of the Units raised by each finder. Each finder warrant entitles the holder thereof to purchase one Common Share at a price of C$1.10 at any time prior to July 1, 2024.
All of the securities sold pursuant to the offering are subject to a four-month hold period, which will expire on November 1, 2022.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act“) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
NioCorp is developing a critical minerals project in Southeast Nebraska that will produce niobium, scandium, and itanium. The Company also is evaluating the potential to produce several rare earths from the Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron (“NdFeB”) magnets, which are used across a wide variety of defense and civilian applications.
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We acknowledge the [financial] support of the Government of Canada.