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.
