Niocan raises minimum $1.3 million

Niocan (NIO-T) is raising a minimum of $1.3 million via a private placement for work at the Oka niobium project, west of Montreal, P.Q.

Privately held investment company Electrum Ferrometals is taking on 2 million units. A single unit will consist of three parts: one Niocan share priced at 65; a half-warrant exercisable at 80 per share within 30 months; and a half-warrant exercisable at $1 per share within 30 months.

When the deal closes in mid-August, Electrum will gain a seat on Niocan’s board of directors.

Niocan says it will direct the money towards an ongoing bankable feasibility study at Oka and into general working capital.

The company hopes to be granted a certificate of authorization from Quebec’s Ministry of Environment before winter.

Niocan has already obtained an operating permit on 9.4 ha of agricultural land from Quebec’s Agricultural Land Protection Commission. It has also acquired a mining lease and permits for a tailings facility from the Ministry of Natural Resources.