NioCorp (NB) Soars 13.16% on $50M Capital Raise and U.S. Government Support for Critical Minerals Projects

NioCorp Developments (NB) surged 13.16% on Wednesday, marking a six-day winning streak with a cumulative gain of 33.88%. The stock hit its highest level since September 2025, climbing 14.40% intraday, driven by renewed investor interest in its critical minerals projects and recent capital-raising efforts.

The company’s stock rally followed the completion of a $50 million registered direct offering, which provides crucial funding for its Elk Creek Critical Minerals Project in Nebraska. This financing addresses auditor concerns over liquidity risks and supports ongoing development of the site, which hosts one of the world’s largest undeveloped niobium deposits and significant scandium resources. Recent progress, including land acquisitions and drilling campaigns, has advanced the project’s feasibility while aligning with U.S. government priorities to secure domestic supply chains for critical materials.

Government support has played a pivotal role in NioCorp’s momentum. A $10 million grant from the U.S. to build a scandium supply chain in Nebraska directly bolsters the company’s strategic initiatives. These efforts align with broader national policies aiming to reduce reliance on foreign mineral sources, enhancing NioCorp’s appeal as a key player in the clean-energy and defense sectors. Leadership changes, including the appointment of a senior executive and board members with local expertise, further strengthen operational capabilities and governance.

Despite these positives, challenges persist. NioCorp’s financials remain under pressure, with a negative earnings per share (EPS) of ($0.34) in the latest quarter and a premium P/B ratio of 142.50. Short interest has risen 16.35% in a month, reflecting lingering skepticism about the company’s path to profitability. While the stock’s “Buy” consensus rating highlights optimism, its low market rank in the basic materials sector underscores the risks of project delays, regulatory hurdles, and continued dilutive financing.

The coming months will be critical for NioCorp as it advances feasibility studies and seeks long-term funding to transition the Elk Creek Project to commercial production. Success in securing regulatory approvals and scaling operations could shift the narrative from speculative risk to growth potential, while setbacks may test investor patience. For now, the stock’s performance reflects a delicate balance between strategic progress and financial realities in a high-stakes sector.