Niocan Announces Completion of Private Placement Financing with Nio-Metals Holdings LLC and Other Investors

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Posted on September 06, 2011

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Niocan Announces Completion of Private Placement Financing with Nio-Metals Holdings LLC and Other Investors

 

Toronto, Ontario, September 6, 2011: Niocan Inc. (“Niocan” or the “Company”) (TSX-NIO)
announced today that the Company has received payment for all subscriptions and has
completed the issuance of an aggregate of 3,005 units (each, a “Unit”) at an issue price of
$1,000 per Unit, representing aggregate gross proceeds to the Company of $3,005,000 (the
“Private Placement”). The principal investor is Nio-Metals Holdings LLC (“Nio-Metals”) which
has purchased 1,750 of the Units.

Each Unit is comprised of one $1,000 principal amount of a secured debenture (“Debenture”)
and 520 transferable common share purchase warrants of Niocan (each, a “Warrant”). Each
Debenture will mature on August 30, 2012 and will bear interest at an annual rate of 12%. The
principal amount and interest may be payable in cash or common shares of Niocan (“Common
Shares”) at Niocan’s sole option (subject to certain limitations), with the number of shares to be
determined based on a conversion price of $1.45 per Common Share. Niocan will also have the
right to redeem the Debentures prior to maturity at a cash redemption price of 105% of the
principal amount. Each Warrant will entitle the holder thereof to purchase one Common Share
at a price of $1.45 (the “Exercise Price”) until August 29, 2014.

As required by the Toronto Stock Exchange, a maximum of 2,076,383 Common Shares may be
issued or made issuable to Nio-Metals in connection with the Private Placement. Consequently,
187,890 of the Warrants acquired by Nio-Metals may not be exercised without prior approval of
disinterested shareholders of Niocan, other than in certain circumstances. The remainder of the
Warrants acquired by Nio-Metals are not subject to these restrictions and may be exercised at
any time.

Further to the Company’s press release of August 29, 2011, the board of directors has
appointed Mr. Mark Wallace as a director to fill the vacancy created by the resignation of Mr.
Lars-Eric Johansson.

About Niocan
Niocan’s mission is to become a ferroniobium producer as soon as possible, following the
issuance of a Certificate of Authorization from the Ministry of Sustainable Development,
Environment and Parks for its Oka niobium property. Mining assets include mining rights in two
(2) properties: 48 claims covering 1604 acres as well as surface rights on 231 acres at Oka and
the Hudson Bay Great Whale Iron property covering 17,098 acres.
2000 rue Peel, bureau 760
Montréal (Québec) H3A 2W5
Tél: (514) 288-8506
Fax: (514) 843-4809


On behalf of the Board of Directors

For more information, please contact
Hubert Marleau
Interim Chairman of the Board and CEO
514-288-8506
514-843-4809 (fax)
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read 4878 times Last modified on Thursday, 25 July 2013 22:16
Published in 2011