NioCorp announces $45 million public offering to fund Elk Creek Project

CENTENNIAL, CO - NioCorp Developments Ltd. (NASDAQ:NB) has priced its public offering in the United States at $3.25 per common share, with plans to issue up to 13,850,000 shares for expected gross proceeds of approximately $45 million. The stock has shown remarkable momentum, delivering a 132% return over the past six months, according to InvestingPro data.

The critical minerals company intends to use the proceeds to advance construction of its Elk Creek Project in Southeast Nebraska, which aims to produce niobium, scandium, and titanium. The offering is expected to close on or about July 18, 2025, subject to customary closing conditions. InvestingPro analysis indicates the company operates with a moderate debt level, with a debt-to-equity ratio of 0.46, while maintaining an Altman Z-Score of 3.57, suggesting financial stability.

Maxim Group LLC is serving as the sole placement agent for the offering, which is being conducted under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission.

The company specified that no securities will be offered or sold to Canadian purchasers under this offering.

NioCorp’s Elk Creek Project is focused on producing minerals used in various industrial applications. Niobium is utilized in specialty alloys and high-strength steel for automotive, structural, and pipeline applications. Scandium can be combined with aluminum to create stronger, more corrosion-resistant alloys and is used in fuel cells. Titanium serves in lightweight alloys, pigments, and aerospace applications.

The company is also evaluating the potential to produce rare earth elements from the project, including neodymium, praseodymium, terbium, and dysprosium, which are critical components in making specialized magnets used in defense and civilian applications.

According to the press release statement, the offering is being made pursuant to an effective shelf registration statement previously filed with and declared effective by the SEC. InvestingPro data reveals the company is not currently profitable, with negative earnings per share in the last twelve months. Subscribers can access 12 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.

In other recent news, NioCorp Developments Ltd. announced the pricing of its public offering of common shares, aiming to raise $20 million before expenses. The offering includes 7,692,308 common shares at $2.60 per share, with Maxim Group LLC acting as the sole placement agent. The proceeds are intended for working capital and to advance the Elk Creek Project in Nebraska, which focuses on producing critical minerals like niobium, scandium, and titanium. Additionally, NioCorp will join the Russell 3000 Index, effective June 30, 2025, granting it automatic membership in the small-cap Russell 2000 Index. This inclusion is part of the annual Russell indexes reconstitution, based on market-capitalization rankings.

In another development, H.C. Wainwright adjusted its price target for NioCorp to $4.00 from $4.25, while maintaining a Buy rating. This adjustment follows a non-binding Expression of Interest from UK Export Finance for potential debt funding of up to $200 million for the Elk Creek Project. The funding is contingent upon NioCorp executing an offtake agreement with UK-based companies. Despite the price target reduction, the firm maintains a positive outlook on NioCorp, emphasizing the project’s strategic value for domestic supply chains.

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