NioCorp Developments announced today that it was combining with GXII, a blank-check company incorporated in Delaware, in a deal that will see NioCorp have access up to $285 million in net cash.
NioCorp Developments (TSX:NB) is developing a critical minerals project in Southeast Nebraska, the Elk Creek project, that will produce niobium, scandium and titanium. Today the company was up 13% to $1.19 a share.
Additionally, NioCorp announced the signing of non-binding letters of intent with Yorkville Advisors Global, which could provide NioCorp with access to up to an additional $81 million.
NioCorp CEO and executive chair Mark A. Smith said the money will accelerate project development.
“This business combination with GXII, and the two additional financing packages, have the potential to significantly accelerate our efforts to obtain the required project financing and to ultimately bring the Elk Creek Project to construction and eventual commercial operation," said Smith. "Our goal is to rapidly build secure and reliable U.S. supply chains of the critical minerals that multiple industries need to help us build a more sustainable and less carbon-intensive future and for other critical domestic uses. Once completed, these transactions have the potential to put NioCorp on the fast track to obtain the required project financing to deliver on that promise, and to do so in an environmentally smart manner.”
NioCorp intends to be listed on the Nasdaq Stock Exchange soon after the acquisition closes.
