Good question. The options I have only seen in the past for the company to raise money are Private Placements, MS loans or money from the likes of Yorkville in exchange for shares which are diluting. Not sure if MS or GX BOD’s are likely to loan their own money or Belgians will step forward on a PP so it’s more likely we get more of the same: like diluting shares given to Yorkville or the equivalent. Instead of rewarding Yorkville on lousy terms, I propose rewarding NioCorp shareholders who purchased warrants prior to the GX merger disaster who bought warrants at a much higher price than today on the expectation that the GX merger would bring in $200,000,000 + and the share price would exceed $10+ after the merger. Instead, not only did the NB share price collapse because the GX merger brought little to no money to NioCorp but warrant holders share price has also declined though not as much.
The reason why the NB and NIOBW share prices have declined even more since the Railveyor CC is because of the announcement there will be a delay in EXIM financing approval due to EXIM now requiring additional drilling.
The only ones buying shares right now thankfully are those who believe NioCorp will raise the money to do the drilling, conduct more engineering and finance the revised FS.
But to push the share price higher, NioCorp needs to announce financing at a minimum to cover the cost of drilling which appears to be EXIMs only remaining contingency for loan approval. (Mgt has already stated a revised FS is not a pre condition for EXIM financing and addtl engineering has not been mentioned as an EXIM pre condition to financing approval).
My point is, unless NioCorp announces or plans to announce some non dilutive deal or less diluting deal with some entity to finance drilling, engineering or the revised FS, we’re likely to see more of the diluting Yorkville style financing. That being the case, why not extend an offer to existing NioCorp warrant holders who actually have skin in the game instead of Yorkville or the equivalent. The way to prevent warrant holders from dumping their shares would be to put a condition that warrant holders cannot sell their shares for say 30 or 60 days giving the share price enough time to recover on news that NioCorp raised money to cover drilling and the drilling commences.
In either case, an announcement of short term financing to cover drilling costs will raise the share price which would likely benefit the share price for all shareholders regardless if the financing comes from a PP, a loan from EXIM or MS (unlikely), a revised exercise price for warrant holders or Yorkville.
Regarding replacing MS, sounds good in theory but that is unlikely to happen anytime soon and most likely won’t happen until NioCorp receives EXIM funding.
The more likely scenario is that MS retires or leaves the company after EXIM funding along with his 2,500,000 shares (25,000,000 pre split) plus whatever new stock options/warrants he’s received post split and Scott Honan takes over as CEO. Until EXIM financing occurs, I don’t predict MS is going anywhere.
Happy to entertain any addtl creative ways other folks have for how NioCorp can raise money for drilling, engineering and completing a revised FS because until we get an announcement on short term financing, I am concerned the share price will bounce around just under $2.00 intel a PR re short term financing or an off take gets released.
AI
