Niocorp Developments Ltd (NB)

[UnlimitedPower]

I posted about the $750 million raise last week and I posed the same question.

Why would Largo need to raise so much money when they are cash flowing and reducing their outstanding debt? My feeling is that Mark is creating a back up plan for NioCorp in case financing lags or is not too his liking. It can also be used as leverage to let interested parties know that their funds are welcome but are not needed. This may give NioCorp additional leverage during negotiations. Also, a small portion of the funds can be used to take a stake in NioCorp giving them the funds to start the project without needing to wait for outside parties. A Largo investment in NioCorp will further de-risk the project, raise the share price, and possibly reduce share dilution.

As I stated in the post I have no clue if my presumptions are accurate but I do think they are possibilities. Mark has often said that he is preparing for everything and the $750 million Largo fund raise may be another arrow in Niocorp's quiver!

Just my thoughts... and they could be wrong....