NioCorp Secures $10 Million in Funding to Advance the Elk Creek Project and Purchase a Key Nebraska Land Parcel Along With 90+ Percent of the Project's Mineral Resource and Mineral Reserve

Rhea-AI Summary

NioCorp Developments Ltd. (NIOBF) announced a US$10 million funding agreement with Lind Global Asset Management. The funds are aimed at advancing the Elk Creek Superalloy Materials Project, allowing NioCorp to acquire land and mineral rights to over 90% of its resources. The funding will be through a convertible security with a face value of US$11.7 million and a net proceeds of US$9.65 million. It has a 24-month maturity and includes a warrant for purchasing 8,588,000 shares at C$0.97 per share.

Positive

• Secured US$10 million funding to advance the Elk Creek Project.
• Funding allows acquisition of land and rights for over 90% of the mineral resource.
• Convertible security has a favorable face value of US$11.7 million.

Negative

• Convertible security could lead to potential dilution of shares.
• Funding is backed by assets, which may affect financial flexibility.

CENTENNIAL, Colo., Feb. 16, 2021 /PRNewswire/ -- NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX:NB) (OTCQX:NIOBF) announces it has signed a funding agreement for US$10 million with Lind Global Asset Management III, LLC, an investment entity managed by The Lind Partners ("Lind"), a New York-based institutional fund manager. This funding is intended to advance NioCorp's Elk Creek Superalloy Materials Project (the "Project") and, in particular, to enable the Company to purchase the surface land and associated mineral rights to more than 90% of the Project's Mineral Resource and Mineral Reserve.  The Company holds the remaining Mineral Resource and Mineral Reserves as well as other surface rights with other Nebraska landholders.

The funding provided to NioCorp by Lind will come in the form of a US$10 million convertible security (the "Funding") which will have a face value of US$11.7 million (the "Face Value").

NioCorp will receive net proceeds of US$9.65 million from the Funding. The Face Value of the convertible security will have a 24-month maturity date and can be paid in cash or be converted into common shares of the Company ("Shares") at a conversion price equal to 85% of the five-day volume weighted average price ("VWAP") immediately prior to each conversion. Shares issued under the Funding will not be freely tradable in Canada until after a 121-day lock-up period following deal close.  The Funding agreement contains restrictions on how much may be converted in any particular month.  NioCorp also has the option at any time to buy back the entire remaining balance of the Funding without an early repayment penalty. In connection with the funding, Lind will be issued a warrant to purchase up to 8,588,000 Shares at a price of C$0.97 per share for a period of 48 months.

The Funding is backed by assets of the Company, including the land package that NioCorp intends to purchase with the funds.  The Funding and the issuance of securities thereunder has been conditionally approved by the Toronto Stock Exchange (the "TSX").  Closing is subject to final TSX approval and to the satisfaction of other customary closing conditions.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

@NioCorp $NB $NIOBF #ElkCreek #Niobium #Scandium #ElkCreek #Nebraska

For More Information

Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com

About NioCorp

NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.

About The Lind Partners

The Lind Partners is an institutional fund manager and leading provider of growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind makes direct investments ranging from US$1 to US$30 million (plus follow-ons), invests in syndicated equity offerings and selectively buys on market. Lind has completed more than 100 direct investments totaling over $1 Billion in value and has been a flexible and supportive capital partner to investee companies since 2011.

Forward-Looking Statements Disclaimers

Certain statements contained in this document may constitute forward-looking statements, including statements regarding the expected closing of the financing, the receipt of proceeds therefrom and the intended use of proceeds for the purposes enabling the Company to purchase the surface land and associated mineral rights to more than 90% of the Project's Mineral Resource and Mineral.  Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp's plans or prospects to change include risks related to the Company's ability to operate as a going concern; risks related to the Company's requirement of significant additional capital; changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes in economic valuations of the Project, such as Net Present Value calculations, changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business and the risks set forth in the Company's filings with Canadian securities regulators at www.sedar.com and the SEC at www.sec.gov. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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SOURCE NioCorp Developments Ltd.

FAQ

What is the significance of the US$10 million funding for NioCorp?

The funding will enable NioCorp to advance the Elk Creek Superalloy Materials Project and purchase key land and mineral rights.

When is the maturity date for NioCorp's convertible security?

The convertible security has a maturity date of 24 months from the funding agreement.

What is the conversion price for NioCorp's funding agreement?

The conversion price is set at 85% of the five-day volume weighted average price prior to each conversion.

What are the potential effects of the funding on NioCorp's share value?

The funding could lead to potential dilution of shares due to the convertible nature of the security.

How much net proceeds will NioCorp receive from the funding?

NioCorp will receive net proceeds of US$9.65 million.