NioCorp Secures $50 Million in Direct Offering

NioCorp Developments Ltd. (NASDAQ: NB) announced the closing of a registered direct offering, successfully raising $50.0 million in gross proceeds. The capital is intended to bolster the company's working capital and accelerate the development of its flagship Elk Creek Critical Minerals Project in Southeast Nebraska.

Offering Details and Structure

The offering comprised the sale of 10,000,000 common shares at a price of $5.00 per common share. Maxim Group LLC acted as the sole placement agent for the transaction. The offering was conducted pursuant to an effective shelf registration statement on Form S-3 (File No. 333-280176), which was filed with the U.S. Securities and Exchange Commission (SEC) on June 13, 2024, and subsequently declared effective on June 27, 2024. The net proceeds are specifically allocated to general corporate purposes and advancing efforts to launch construction and achieve commercial operation for the Elk Creek Project.

Market Reaction and Financial Impact

The direct offering presents a mixed dynamic for investors. While the influx of $50.0 million provides crucial funding for the Elk Creek Project, it also introduces a degree of share dilution for existing shareholders due to the issuance of new common shares. However, the securing of this capital significantly strengthens NioCorp's financial position, empowering the company to expedite field activities, land acquisition, engineering, and site preparation for the project. This strategic move is expected to reduce financing risks and provide substantial momentum for ongoing discussions with major debt finance providers, including the U.S. Export-Import Bank, regarding a proposed larger $800 million debt financing package.

Broader Context and Project Significance

The Elk Creek Project is positioned as a strategically vital undertaking, aiming to become North America's sole producer of niobium, scandium, and titanium, with additional potential for rare earth element production. These critical minerals are essential for various high-tech, clean energy, and defense applications, aligning with national imperatives for supply chain resilience and reduced reliance on foreign sources. The company's stock, NASDAQ: NB, has demonstrated significant market momentum, advancing over 130% in the past six months, reflecting investor optimism in the project's operational progress and its alignment with geopolitical priorities. Despite reporting a net loss of $17.4 million in fiscal year 2025, NioCorp maintains a stable financial position with moderate debt levels and a low debt-to-equity ratio, supported by a market capitalization of $1.57 billion. A June 2022 Feasibility Study for the project indicated a pre-tax Net Present Value of $2.8 billion and a pre-tax Internal Rate of Return of 29.2%.

Outlook and Future Development

With the successful closing of the direct offering, NioCorp is poised to accelerate its development timeline for the Elk Creek Project. Key factors to observe in the coming months include the progression of pre-construction activities, the securing of additional project financing, and further advancements towards commercial operation. The capital infusion is a foundational step, enabling NioCorp to de-risk the project further and maintain its trajectory towards establishing a domestic supply of critical minerals vital for strategic industries.