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NioCorp raises C$5.16mln from two-tranche placement

Wednesday, March 1, 2017 12:15
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NioCorp Developments Ltd (TSE:NB) has closed the second and final tranche of a non-brokered private placement with gross proceeds totalling C$5.16mln after it was upped from an original target of C$2mln.

Net proceeds from the offering will be used by the company for continued development of NioCorp’s Elk Creek superalloy materials project and for general corporate purposes.

The company has issued an aggregate of 7,364,789 units of the company at a price of 70 cents per unit. Each unit comprised one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire a common share of the company at a price of 85 cents for a period of three years from their date of issuance.

NioCorp closed the first tranche of the offering on Feb. 14, consisting of the issuance of 3,860,800 units, at a price of 70 cents per unit, for gross proceeds of C$2,702,560. The second tranche resulted in the issuance of 3,503,989 units at a price of 70 cents per unit, for gross proceeds of C$2,452,792.

The offering originally was intended to raise aggregate gross proceeds of up to C$2mln when announced on Jan. 27. As a result of positive investor response to the offering, it was increased multiple times prior to the second tranche closing. Final aggregate gross proceeds from the offering were more than 2.5 times higher than the initial offering amount, representing an increase of 158%.

The company paid cash commissions of C$87,527 and issued 78,342 broker warrants (having the same terms as the warrants) in connection with the private placement to brokers outside of the United States. All securities issued pursuant to the private placement are subject to a hold period under Canadian law expiring four months and one day from closing and are subject to resale restrictions under US securities laws.

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