Institutional Investor Provides an Additional US$1.0 Million to NioCorp Developments Ltd. in First Tranche Funding as a Result of NioCorp’s Success in its Ongoing Private Placement Capital Raise
December 30, 2015 (Source) — NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
NioCorp Developments Ltd. (“NioCorp” or the “Company“) (TSX:NB)(OTCQX:NIOBF)(FRANKFURT:BR3) announced today that it has received an additional US$1.0 million in First Tranche funding as part of a definitive convertible security funding agreement (the “Agreement“) with an entity managed by The Lind Partners, a New York based asset management firm (together, “Lind“). The US$1.0 million from Lind was made available as a result of NioCorp’s success in achieving a key milestone in its ongoing private placement capital raise, announced on December 15, 2015.
NioCorp’s ongoing private placement has now exceeded CAD$4.5 million in subscription commitments, and additional subscriptions are continuing to be accepted, Company officials confirmed. That capital raise anticipates placement of up to 9 million units (each a “Unit”) of the Company at a price of CAD$0.57 per Unit to raise gross proceeds of up to CAD$5.13 million. Each Unit will consist of one common share of the Company and one transferable common share purchase warrant (a “Warrant”). Each Warrant shall be exercisable to acquire one additional common share of the Company for a period of 3 years at a price of CAD$0.75 per common share.
Mark A. Smith, NioCorp’s Executive Chairman, stated: “This additional investment from Lind Partners is helping us to accelerate our work toward completion of the Elk Creek Feasibility Study. We very much appreciate Lind’s continuing vote of confidence in the Company and in the Elk Creek project. This funding also underscores the rapid success we are achieving with our private placement offering, which is receiving strong support from investors across the European Union and North America.”
Executive Chairman and Director
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NioCorp is developing the Elk Creek Niobium / Scandium / Titanium project in Southeast Nebraska. Niobium is used to produce High Strength, Low Alloy (“HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium can be combined with Aluminum to make an alloy with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.
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 release. The Mineral Resource presented in the October 2015 PEA has been reported following CIM guidelines. The October 2015 PEA is preliminary in nature and it includes a level of engineering precision and assumptions which are currently considered too speculative to have the economic considerations applied to them that would enable Mineral Resources to be categorized as Mineral Reserves. Inferred Mineral Resources are not included in the mine plan for the October 2015 PEA. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The October 2015 PEA includes price and market assumptions concerning an expanded demand in the scandium market. There is no certainty that the October 2015 PEA will be realized. Certain statements contained in this press release may constitute forward-looking statements. 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 the commodities being explored and proposed for development by NioCorp – niobium, titanium, and scandium) 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. 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 revise any forward-looking statements whether as a result of new information, future events or otherwise.
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