NioCorp Developments Ltd. (“
NioCorp” or the
“
Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) is
pleased to announce the closing of the second and final tranche
(the “
Second Tranche Closing”) of its non-brokered
private placement (the “
Offering”) announced
January 27, 2017. Aggregate gross proceeds for the Offering
(including both the first and the final tranche) totaled
approximately C$5.16 million. Pursuant to the Offering the
Company issued an aggregate total of 7,364,789 units of the Company
(“
Units”) at a price of C$0.70 per Unit.
Each Unit was comprised of one common share of the Company
and one common share purchase warrant (each a
“
Warrant”). Each Warrant entitles the holder
to acquire a common share of the Company at a price of C$0.85 for a
period of three years from their date of issuance.
NioCorp closed the first tranche of the Offering on
February 14, 2017, consisting of the issuance of 3,860,800 Units,
at a price of C$0.70 per Unit, for gross proceeds of
C$2,702,560. The Second Tranche Closing consisted of the
issuance of 3,503,989 Units at a price of C$0.70 per Unit, for
gross proceeds of C$2,452,792.
The Offering originally was intended to raise
aggregate gross proceeds of up to C$2.0 million when announced on
January 27, 2017. As a result of positive investor response
to the Offering, it was increased multiple times prior to the
Second Tranche Closing. Final aggregate gross proceeds from
the Offering were more than 2.5 times higher than the initial
offering amount, representing an increase of 158%.
Net proceeds from the Offering will be used by the
Company for continued development of NioCorp’s Elk Creek Superalloy
Materials Project and for general corporate purposes.
The Company paid cash commissions of C$87,527 and
issued 78,342 broker warrants (having the same terms as the
Warrants) in connection with the Private Placement to brokers
outside of the United States. All securities issued pursuant
to the Private Placement are subject to a hold period under
Canadian law expiring four (4) months and one day from closing and
are subject to resale restrictions under United States securities
laws.
"The entire NioCorp family extends a warm welcome
to our new investors and a heartfelt thanks to the many existing
investors who added to their position through this offering,” said
Mark A. Smith, Executive Chairman and CEO of NioCorp.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of any of the securities in any jurisdiction in which such
an offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. These securities have not been registered under the
United States Securities Act of 1933, as amended (the “U.S.
Securities Act”), or any applicable state securities laws, and may
not be offered or sold in the United States, or to, or for the
account or benefit of, a U.S. person or person in the United States
absent such registration or an applicable exemption from such
registration requirements. United States and U.S. person are as
defined in Regulation S under the U.S. Securities Act.
On Behalf of the Board of Directors, "Mark Smith” Mark Smith
Executive Chairman, CEO, and Director
Source: NioCorp Developments, Ltd.@NioCorp $NB $NIOBF
#Niobium #Scandium #ElkCreek
About NioCorp
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 ("HSLA") 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 also is 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.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this document.
Certain statements contained in this document may constitute
forward-looking statements, including but not limited to statements
regarding the intended use of the proceeds from the Offering, the
ability of NioCorp’s Elk Creek Project to obtain specific rates of
recovery for its planned target products, achieving pilot plant
recovery rates in anticipated future production, estimated CAPEX
and OPEX associated with the Elk Creek Project, potential future
production at the Elk Creek Project, anticipated products to be
produced at the Elk Creek Project, the future critical and
strategic nature of niobium and scandium,, anticipated costs of
production at the Elk Creek Project being competitive, anticipated
competitive advantages, and the timing, completion and results of a
feasibility study for the Elk Creek Project. Such forward-looking
statements are based upon NioCorp’s reasonable expectations and
business plan at the date hereof, which are subject to change
depending on economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause NioCorp’s plans or
prospects to change include changes in demand for and price of
commodities (such as fuel and electricity) and currencies; changes
or disruptions in the securities markets; legislative, political or
economic developments; the need to obtain permits and comply with
laws and regulations and other regulatory requirements; the
possibility that actual results of work may differ from
projections/expectations or may not realize the perceived potential
of NioCorp’s projects; risks of accidents, equipment breakdowns and
labor disputes or other unanticipated difficulties or
interruptions; the possibility of cost overruns or unanticipated
expenses in development programs; operating or technical
difficulties in connection with exploration, mining or development
activities; the speculative nature of mineral exploration and
development, including the risks of diminishing quantities of
grades of reserves and resources; and the risks involved in the
exploration, development and mining business and the risks set
forth under the heading “Risk Factors” in the Company’s S-1
registration statement and other filings with the SEC at
www.sec.gov. NioCorp disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise.
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
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