Niobay Metals closes $11.59-million private placement

Niobay Metals Inc. [NBY-TSXV; MDNNF-OTC] has closed its previously announced brokered private placement for total gross proceeds of $11,593,098. Pursuant to the offering, the company issued 10,094,910 units at a price of $0.65 per unit and 7,399,127 flow-through common shares (FT) at a price of $0.68 per FT share. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole Warrant is good to buy one additional common Share at $0.90 until December 8, 2023.

The offering was conducted by a syndicate of agents led by Canaccord Genuity Corp. and including Sprott Capital Partners LP. In connection with the offering, the agents received an aggregate cash commission of $452,763 and an aggregate of 672,653 broker warrants, each such broker warrant allowing its holder to subscribe one unit, at $0.65 per Unit, for 24 months from the closing date.

The company intends to use the net proceeds of the offering for exploration expenditures on the 100%-owned James Bay Niobium Project located 45 km south of Moosoneeo in the James Bay Lowlands in Ontario, as well as general working capital.

Claude Dufresne, President and CEO of Niobay, commented: “We are pleased by the support that we received from the investment community, it is a clear statement of trust towards the James Bay Niobium Project. We will now continue the development of the James Bay Niobium Project, starting with a 12,000-metre drill program on the property. 2021 will definitely be a very exciting year for Niobay shareholders.”