NioCorp's $5.0M Offering: A Boost for Critical Minerals Project

NioCorp Developments Ltd. (NB) has announced the closing of a $5.0 million underwritten offering, priced at-the-market under Nasdaq rules. The offering consisted of 2,577,320 common shares, 2,577,320 Series A warrants, and 1,288,660 Series B warrants, with each common share sold together with one Series A warrant and one-half of one Series B warrant at a combined public offering price of $1.94. Maxim Group LLC acted as the sole book-running manager and underwriter for the offering.

The proceeds from the offering will be used to repay a portion of the outstanding obligations under the unsecured notes previously issued by the Company in April 2024 and for working capital and general corporate purposes. NioCorp plans to use the funds to advance its efforts to launch construction of the critical minerals project in Southeast Nebraska, known as the Elk Creek Project, and move it to commercial operations. The Company also intends to use the proceeds to evaluate the potential to produce several rare earths from the Elk Creek Project.

The pricing of the offering at-the-market under Nasdaq rules reflects the current market sentiment towards NioCorp and its Elk Creek Project. The at-the-market offering allows NioCorp to sell shares directly to investors at the prevailing market price, indicating that there is demand for the company's stock at the current price level. This suggests that investors are interested in NioCorp's prospects and the potential of the Elk Creek Project. The successful pricing of the offering at-the-market also indicates that investors have confidence in NioCorp's ability to execute its plans and deliver value.



The Elk Creek Project is expected to produce niobium, scandium, and titanium, which are critical minerals with wide-ranging applications in various industries, including electric vehicles and defense. By advancing the project's construction, NioCorp can position itself to capitalize on these growing markets. The offering also provides NioCorp with additional capital to explore and evaluate the potential to produce several rare earths from the Elk Creek Project, which could further diversify NioCorp's product offerings and create new revenue streams.

In summary, NioCorp's $5.0 million underwritten offering, priced at-the-market under Nasdaq rules, is a positive development for the Company and its Elk Creek Project. The offering will help NioCorp reduce its debt, improve its liquidity, and advance its critical minerals project, enhancing its financial stability and growth prospects in both the short and long term. The successful pricing of the offering at-the-market also reflects a positive market sentiment towards NioCorp and its Elk Creek Project, with investors expressing demand for the company's stock and confidence in its ability to execute its plans.