MONTREAL, Nov. 16, 2020 /CNW/ - NioBay Metals Inc.
("NioBay" or the "Company") (TSX-V: NBY) is pleased to announce
that it has entered into an agreement with Canaccord Genuity Corp.
on behalf of a syndicate of agents that includes Sprott Capital
Partners LP (collectively, the "Agents"), in connection with a
"best efforts" private placement (the "Offering") as follows:
- an aggregate of up to 10,769,231 units (the "Units") of the
Company at an issue price of $0.65
per Unit for aggregate gross proceeds of $7,000,000 each Unit will be comprised of one
common share of the Company (each, a "Common Share") and
one-half-of-one common share purchase warrant of the Company (each
whole warrant, a "Warrant") with each Warrant entitling the holder
thereof to acquire one Common Share at a price of $0.90 per share for a 36-month period following
the closing date of the Offering; and
- an aggregate of up to 4,411,765 Common Shares that will qualify
as "flow-through shares" (within the meaning of subsection 66 (15)
of the Income Tax Act (Canada))
("Flow-Through Shares") at an issue price of $0.68 per Flow-Through Share for aggregate gross
proceeds of up to $3,000,000.
In addition, the Agents have been granted an option to sell up
to that number of an additional Units and FlowThrough Shares for
additional gross proceeds of up to $1,500,000.
The net proceeds from the Offering will be used for the
development of NioBay's James Bay Niobium Project as well as
general corporate purposes.
The Offering is expected to close on or about December 8, 2020 and is subject to certain
closing conditions including, but not limited to, the receipt of
all necessary approvals including the conditional listing approval
of the TSX Venture Exchange and the applicable securities
regulatory authorities. The Offering is being made by way of
private placement in Canada. The
securities issued under the Offering will be subject to a hold
period in Canada expiring four
months and one day from the closing date of the Offering. The
Offering is subject to final acceptance of the TSX Venture
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
ABOUT NIOBAY METALS INC.
NioBay Metals Inc. is a mining exploration company holding a 100%
interest in the James Bay Niobium Project located 45 km south of
Moosonee, in the James Bay
Lowlands in Ontario. NioBay also
holds a 72.5% interest in the Crevier niobium and tantalum project
located in Quebec and a 47% direct
participation in mineral titles situated in the Chibougamau and Normetal region, Quebec, under a joint venture agreement with
Certain statements contained in this press release constitute
forward-looking information under the provisions of Canadian
securities laws including statements about the Company's plans.
Such statements are necessarily based upon a number of beliefs,
assumptions, and opinions of management on the date the statements
are made and are subject to numerous risks and uncertainties that
could cause actual results and future events to differ materially
from those anticipated or projected. The Company undertakes no
obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors
should change, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
SOURCE NioBay Metals Inc.