NioCorp Shares Soar 17.46% on $110M Capital Raise and $10M DoD Grant for Critical Minerals Project

NioCorp Developments (NB) surged 17.46% on Thursday, marking its highest close since October 2025, with intraday gains reaching 23.82%. The stock has risen 20.67% over two consecutive trading days, driven by renewed investor confidence in its strategic initiatives and external support.

Recent capital raises totaling $110 million in late September and early October 2025 have bolstered the company’s liquidity, enabling progress on the Elk Creek Critical Minerals Project in Nebraska. These funds, secured through registered and public offerings, aim to advance construction and reduce reliance on foreign mineral supplies. However, the issuance of over 19 million new shares has raised concerns about dilution and ownership stakes.

Government backing has reinforced the project’s strategic value. A $10 million U.S. Department of Defense grant in August 2025 supports domestic scandium production, aligning with national security priorities. Elk Creek’s niobium, scandium, and zirconium are now classified as high-priority critical minerals, underscoring their role in defense, aerospace, and energy sectors. The company’s participation in industry forums further highlights its positioning in the critical minerals supply chain.

Operational advancements include expanded land acquisitions and infrastructure improvements, while leadership additions, such as Ernest Cleave and Tony Fulton, have strengthened governance. CEO Mark Smith’s public appearances have elevated the company’s visibility, though mixed analyst opinions persist. Price targets range from $0.55 to $8.25 per share, reflecting uncertainty over long-term profitability and debt management.

Challenges remain, including ongoing annual losses and regulatory hurdles for the Elk Creek project. The company’s reliance on external financing—such as a potential $800 million loan from the U.S. Export-Import Bank—introduces execution risks. Despite these, Elk Creek’s potential to supply strategic minerals positions NioCorp at the forefront of the U.S. decarbonization and technology transition, attracting institutional interest amid a volatile market landscape.