Replies to post #45174 on Niocorp Developments Ltd (NB)

[GrowthMindset]

It is quite strange. Especially the timing with NIOBF. Makes you wonder, what if....

[PutzMueler]

It would be nice but, , ,

I doubt if it is the (if I help you) deal I expected Mark to be making with Largo when he took the reins @ Largo. To make sure our best interests were being thought about as well. But you never know!


It's probably going to pay for Largo to double up on production, or open another mine!

"The base shelf prospectus, when final, will allow Largo and certain of its security holders to qualify the distribution by way of prospectus of up to $750 million of common shares, debt securities, subscription receipts, warrants and units (all of the foregoing, collectively, the "Securities") or any combination thereof, during the 25-month period that the base shelf prospectus is effective."

Largo and Certain stakeholders!
25 months to complete!
750,000,000 shares dilution possible!

[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....

[walterc]

i believe they just want all the options open to issue shares in the next 25 months when neccessary. eg in case they do an acquisition.
i do not think this has anything to do with Niocorp. I do not believe in a merger.