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CENTENNIAL, CO - NioCorp Developments Ltd. (NASDAQ:NB) closed a public offering of 13,850,000 common shares at $3.25 per share, raising approximately $45 million in gross proceeds, the critical minerals company announced Friday. The company, currently valued at approximately $1.5 billion, has shown remarkable market performance with a 152% return over the past year and a 135% gain in the last six months.InvestingPro analysis reveals 8 additional investment signals for NioCorp, offering crucial insights for investors considering this critical minerals player.
Maxim Group LLC served as the sole placement agent for the offering, which was conducted in the United States and jurisdictions outside Canada. No securities were sold to Canadian purchasers.
The company intends to use the net proceeds for working capital and general corporate purposes, including advancing construction of its Elk Creek Project in Southeast Nebraska. While operating with moderate debt levels, the company is not currently profitable, making this capital raise crucial for its development plans. The project aims to produce niobium, scandium, and titanium, with potential for rare earth production.
The offering was made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission on June 13, 2024, and declared effective on June 27, 2024.
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 alloys with improved corrosion resistance and is used in fuel cells. Titanium is utilized in lightweight alloys for aerospace applications, armor, and medical implants.
The company’s shares are listed on the Nasdaq Stock Market under the ticker symbol NB.
According to the press release statement, the Elk Creek Project is expected to produce critical minerals used across various defense and civilian applications.
In other recent news, NioCorp Developments Ltd. has announced a public offering priced at $3.25 per common share, aiming to raise approximately $45 million. The proceeds are intended to advance construction of the Elk Creek Project in Southeast Nebraska, which focuses on producing niobium, scandium, and titanium. Maxim Group LLC is acting as the sole placement agent for this offering. Additionally, H.C. Wainwright has adjusted its price target for NioCorp to $4.00 from $4.25 while maintaining a Buy rating, following a non-binding Expression of Interest from UK Export Finance for potential debt funding. The EOI signifies international interest in the Elk Creek Project and could diversify NioCorp’s financing options. Furthermore, 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, which benchmarks approximately $10.6 trillion in assets. These developments reflect significant strategic and financial moves by NioCorp as it progresses with its critical minerals project.
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