NioCorp Developments Ltd said it has closed its previously announced up-sized non-brokered private placement with a total of 4,981,035 units issued at a price per unit of C$0.96, for total gross proceeds of approximately C$4.8 million.
Pricing of the units was set at a premium to the five-day Volume Weighted Average Price (VWAP) of NioCorp common shares just prior to the launch of the offering on June 13, 2022.
The initial offering announcement on June 13, 2022, was for up to 4,519,481 units, for gross proceeds of up to approximately C$4.35 million.
READ: NioCorp Developments announces C$4.35M non-brokered private placement
Each unit consists of one common share of NioCorp and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of C$1.10 at any time prior to July 1, 2024.
Proceeds of the private placement will be used for continued advancement of the company's Elk Creek Critical Minerals Project and for working capital and general corporate purposes.
The company paid cash commissions of C$62,496 and 65,100 finder warrants to finders outside of the United States. The cash commission and finder warrants were each equivalent to 3% of the units raised by each finder. Each finder warrant entitles the holder to purchase one common share at a price of C$1.10 at any time prior to July 1, 2024.
All of the securities sold under the offering are subject to a four-month hold period, which will expire on November 1, 2022.
NioCorp is developing a critical minerals project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. The company also is evaluating the potential to produce several rare earth byproducts from the project.
Contact the author at jon.hopkins@proactiveinvestors.com