Niocorp Developments Ltd (NB)

[tedro84]

My $5.15 already assumes the dilution is at NPV, if that’s how you want to figure it. Look at it this way, the current 230 million times $5.15 gives ~1.2 billion. The 100 million shares that are given as equity at 5.15 gives the other half billion.

I don’t think it is wise to attach a price to the equity given up as part of the debt package. I’ve said before, I think a hypothetical financing agreement would look like this: in exchange for an offer to loan a billion dollars at x% require, funder ABC requires 100 million shares of the company.

Essentially ABC isn’t buying shares. They are given shares and interest for the loan.

Now I don’t expect it to be a single source and as simple as that. I just don’t expect large personal placements, secondary offerings, or anything similar. I expect Niocorp to incur the full debt required by the projected CAPEX. The equity that is given up should be looked at more as a loan origination cost with approximately every $250MM of funding worth 10% of the company.