CENTENNIAL, Colo., Feb. 16, 2021 /PRNewswire/ -- NioCorp
Developments Ltd. ("NioCorp" or the
"Company") (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 ("Lind"), a
New York-based institutional fund
manager. This funding is intended to advance NioCorp's Elk Creek
Superalloy Materials Project (the "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
(the "Funding") which will have a face value of US$11.7 million (the "Face Value").
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 ("Shares") at a conversion price equal to 85% of the
five-day volume weighted average price ("VWAP") 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 (the
"TSX"). 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 $NB $NIOBF #ElkCreek #Niobium #Scandium #ElkCreek
#Nebraska
For More Information
Contact Jim Sims, VP of External
Affairs, NioCorp Developments Ltd., 720-639-4650,
jim.sims@niocorp.com
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 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.
Forward-Looking Statements Disclaimers
Certain statements contained in this document may constitute
forward-looking statements, including statements regarding the
expected closing of the financing, the receipt of proceeds
therefrom and the intended use of proceeds for the purposes
enabling the Company to purchase the surface land and associated
mineral rights to more than 90% of the Project's Mineral Resource
and Mineral. 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 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; and the risks
involved in the exploration, development and mining business and
the risks set forth in the Company's filings with Canadian
securities regulators at www.sedar.com and 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.
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SOURCE NioCorp Developments Ltd.
