NioCorp Developments Ltd. (TSX:NB) (OTCQX:NIOBF) announces it has signed a funding agreement for US$10 million with Lind Global Asset Management III, LLC, an investment entity managed by The Lind Partners a New York-based institutional fund manager. This funding is intended to advance NioCorp’s Elk Creek Superalloy Materials Project and, in particular, to enable the Company to purchase the surface land and associated mineral rights to more than 90% of the Project’s Mineral Resource and Mineral Reserve. The Company holds the remaining Mineral Resource and Mineral Reserves as well as other surface rights with other Nebraska landholders.
The funding provided to NioCorp by Lind will come in the form of a US$10 million convertible security which will have a face value of US$11.7 million.
NioCorp will receive net proceeds of US$9.65 million from the Funding. The Face Value of the convertible security will have a 24-month maturity date and can be paid in cash or be converted into common shares of the Company at a conversion price equal to 85% of the five-day volume weighted average price immediately prior to each conversion. Shares issued under the Funding will not be freely tradable in Canada until after a 121-day lock-up period following deal close. The Funding agreement contains restrictions on how much may be converted in any particular month. NioCorp also has the option at any time to buy back the entire remaining balance of the Funding without an early repayment penalty. In connection with the funding, Lind will be issued a warrant to purchase up to 8,588,000 Shares at a price of C$0.97 per share for a period of 48 months.
The Funding is backed by assets of the Company, including the land package that NioCorp intends to purchase with the funds. The Funding and the issuance of securities thereunder has been conditionally approved by the Toronto Stock Exchange. Closing is subject to final TSX approval and to the satisfaction of other customary closing conditions.
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 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 superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material 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 superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.
About The Lind Partners
The Lind Partners is an institutional fund manager and leading provider of growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind makes direct investments ranging from US$1 to US$30 million (plus follow-ons), invests in syndicated equity offerings and selectively buys on market. Lind has completed more than 100 direct investments totaling over $1 Billion in value and has been a flexible and supportive capital partner to investee companies since 2011.
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