(MENAFN- ProactiveInvestors) Developments (CVE:NB)(OTCQX:NIOBF) has completed a $2.19 million private placement financing satisfying the main condition of its major move to the Toronto Stock Exchange.
The company said it issued 2.91 million special warrants including an over-allotment option at a price of 75 cents apiece.
Every special warrant can be exchanged for one unit of the company with each unit made up of one common share and one share purchase warrant. Each whole warrant can be used to buy an additional common share at a price of $1.00 for a period of two years.
The offering was conducted by Mackie Research Capital Corp (MRCC) on a bought deal basis said.
"We are very pleased that when we advised MRCC of our need to raise a minimum $1000000 to satisfy TSX listings requirements MRCC quickly offered a bought deal private placement" said chief executive officer Mark Smith.
"Due to strong demand the offering was increased and the overallotment option was fully exercised. This shows a great deal of confidence in and our Elk Creek project as we finalize the conditions necessary to complete our listing on the TSX."
In addition to these latest proceeds said it has also received $325000 from the early exercise of certain warrants granted as part of a previous financing.
The new funds will be used for metallurgical studies and pilot plant work at its Elk Creek project in Nebraska as well as to satisfy the main condition of a listing on the Toronto Stock Exchange.
is developing its Elk Creek niobium project which is expected to reach the feasibility study stage later this year. On Monday the niobium developer updated its mineral resource estimate for its flagship project in Nebraska to include titanium and scandium.
uncovered that both titanium and scandium can be recovered with simple additions to the existing process flowsheet providing more revenue streams that would compliment existing ferroniobium production. The newest resource estimate shows contained niobium of 572 million kilograms in the indicated category and 2.16 billion kilograms of contained titanium oxide. In the inferred category the report shows some 558 million kilograms of niobium and 2.3 billion kilograms of titanium.
The promise of a high grade niobium supply in North America has already managed to secure confidentiality agreements with top investment banks and Credit Suisse.
Indeed the ore grades at the deposit are among the top three in the world and the recovery rates promise to “reset the standard for what world class niobium recovery is going to be” according to CEO Smith. The average grade is looking at is 0.7% or above placing it solidly as the third richest niobium ore deposit in the world behind CBMM and which both operate in Brazil.
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