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CENTENNIAL, CO - NioCorp Developments Ltd. (NASDAQ:NB), whose stock has surged over 123% in the past six months according to InvestingPro data, has finalized the purchase of an additional 325.77 acres of land for its Elk Creek Critical Minerals Project in Nebraska, the company announced Monday. The $1.61 billion market cap company is currently trading near its 52-week high.
The acquisition gives NioCorp ownership of all land hosting the project’s mineral resource and reserve, as well as all acreage needed to begin construction once project financing is secured. The company now holds all necessary surface and mineral rights for the development. InvestingPro analysis shows the company maintains a moderate debt level with sufficient liquid assets to meet short-term obligations.
"This land purchase positions NioCorp to get out of the blocks quickly once we complete project financing and get the Elk Creek Project under construction and into commercial operations," said Mark A. Smith, NioCorp CEO and Executive Chairman, in a press release statement.
The company reported that its current land ownership, combined with options to purchase adjacent properties, provides sufficient area to support planned commercial operations and potentially expand its mineral resource and reserve beyond the current estimated 38-year mine life.
The Elk Creek Project is being developed to produce niobium, scandium, and titanium. NioCorp is also evaluating the potential to produce several rare earth elements from the site.
Niobium is used 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 advanced fuel cells. Titanium serves in lightweight alloys for aerospace applications, armor, and medical implants.
The project represents a potential domestic source of critical minerals that are currently largely imported from overseas suppliers. While the company is not yet profitable, InvestingPro subscribers can access 13 additional investment tips and detailed financial metrics to evaluate NioCorp’s growth potential.
In other recent news, NioCorp Developments Ltd. has closed a $60 million public offering to support its Elk Creek Project in Nebraska. The offering, which consisted of 9,760,000 common shares or pre-funded warrants priced at $6.15 per share, was facilitated by Maxim Group LLC. The company plans to use the proceeds for working capital and advancing the construction of the Elk Creek Project. Additionally, NioCorp is progressing in its due diligence process for securing up to $800 million in financing from the Export-Import Bank of the United States. SLR Consulting has been engaged to conduct an independent environmental and social review as part of this process. In a separate development, H.C. Wainwright has significantly increased its price target for NioCorp to $8.25, maintaining a Buy rating on the company. This follows the completion of an exploratory drill program at the Elk Creek site, funded by the Pentagon. The drill program aimed to upgrade resource classifications and mineral reserves.
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