NioCorp Announces Closing of C$1.9 Million Brokered Private Placement
July 26 2017 - 8:53AM
NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR FOR
DISSEMINATION IN THE UNITED STATES
NioCorp Developments Ltd. ("
NioCorp" or the
"
Company") (TSX:NB) (OTCQX:NIOBF) (FRANKFURT:BR3)
announces that it has closed its previously announced brokered
private placement (the “
Private Placement”) of
units (the “
Units”) of the Company. Under the
Private Placement, a total of 2,962,500 units (the
“
Units”) were issued at a price per Unit of
C$0.65, for total gross proceeds to the Company of approximately
C$1,925,625.
Each Unit issued pursuant to the Private
Placement consists of one common share in the capital of the
Company (a “Common Share”) and one Common Share
purchase warrant (a “Warrant”). Each Warrant
entitles the holder thereof to purchase one additional Common Share
at a price of C$0.79 until July 26, 2021 (a “Warrant
Share”).
The Private Placement was led by Mackie Research
Capital Corporation (the “Agent”). In connection
with the Private Placement, the Company paid the Agent an aggregate
cash commission of approximately C$125,166, equal to six and a half
per cent (6.5%) of the gross proceeds raised under the Private
Placement. The Company also issued to the Agent 192,562 broker
warrants (the “Broker Warrants”), equal to six and
a half per cent (6.5%) of the Units sold pursuant to the Private
Placement. Each Broker Warrant entitles the holder thereof to
purchase one Common Share at a price of C$0.79 until July 26,
2021.
As promptly as practicable following the
closing, the Company will prepare and file a registration statement
and U.S. preliminary prospectus (collectively, the
“Registration Statement”) under the United States
Securities Act of 1933, as amended (the “1933
Act”), in respect of the Common Shares and Warrant Shares
sold under the Private Placement.
Proceeds of the Private Placement will be used
for general working capital purposes and to continue to advance the
Company’s Elk Creek Superalloy Materials Project.
All of the securities sold pursuant to the
Private Placement are subject to a four month hold period, which
will expire on November 27, 2017, as well as additional
restrictions required by the 1933 Act.
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 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. Hedging
transactions involving these securities may not be conducted unless
in compliance with the 1933 Act.
On Behalf of the Board of Directors,
"Mark
Smith”
Mark Smith President, CEO, Chairman and
Director
@NioCorp $NB $NIOBF $BR3 #Niobium #Scandium
#ElkCreek
About NioCorp
NioCorp is developing a superalloy materials
project in Southeast Nebraska with an aim to 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
related to the filing of the Registration Statement, the use of
proceeds, as well as the development of 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 positions expressed or implied by those
forward-looking statements. Risks, uncertainties and other factors
that could cause NioCorp's plans or prospects to change include
risks related to the Company's ability to operate as a going
concern; risks related to the Company's requirement of significant
additional capital; changes in demand for and price of commodities
(such as fuel and electricity) and currencies; changes in economic
valuations of the Project, such as Net Present Value calculations,
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; the risks involved in the
exploration, development, and mining business, and the risks set
forth in the Company's 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., +1 303-503-6203, jim.sims@niocorp.com
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