NioCorp Announces Final Closing of Non-Brokered Private Placement for Gross Proceeds of Approximately C$5.16 Million
Investor Response Lifts Final Gross Proceeds 158% Higher Than Initial Offering
CENTENNIAL, Colo. (March 1, 2017) -- NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX: NB; OTCQX: NIOBF; and FSE: BR3) is pleased to announce the closing of the second and final tranche (the “Second Tranche Closing”) of its non-brokered private placement (the “Offering”) announced January 27, 2017. Aggregate gross proceeds for the Offering (including both the first and the final tranche) totaled approximately C$5.16 million. Pursuant to the Offering the Company issued an aggregate total of 7,364,789 units of the Company (“Units”) at a price of C$0.70 per Unit. Each Unit was comprised of one common share of the Company and one common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to acquire a common share of the Company at a price of C$0.85 for a period of three years from their date of issuance.
NioCorp closed the first tranche of the Offering on February 14, 2017, consisting of the issuance of 3,860,800 Units, at a price of C$0.70 per Unit, for gross proceeds of C$2,702,560. The Second Tranche Closing consisted of the issuance of 3,503,989 Units at a price of C$0.70 per Unit, for gross proceeds of C$2,452,792.
The Offering originally was intended to raise aggregate gross proceeds of up to C$2.0 million when announced on January 27, 2017. 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%.
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 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 (4) months and one day from closing and are subject to resale restrictions under United States securities laws.
"The entire NioCorp family extends a warm welcome to our new investors and a heartfelt thanks to the many existing investors who added to their position through this offering,” said Mark A. Smith, Executive Chairman and CEO of NioCorp.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. These securities have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a U.S. person or person in the United States absent such registration or an applicable exemption from such registration requirements. United States and U.S. person are as defined in Regulation S under the U.S. Securities Act.
On Behalf of the Board of Directors
“Mark Smith”
Mark Smith
Executive Chairman, CEO and Director
