Niobay Metals increases financing to $7.5-million

Executive Summary

• Niobay Metals Inc. has upsized its brokered life offering and concurrent private placement, increasing the maximum gross proceeds from C$5 million to C$7.5 million due to strong investor demand.
• The offering consists of Units, Flow-Through (FT) Units, and Charity FT Units, with Red Cloud Securities Inc. acting as the sole agent and bookrunner.
• Net proceeds are intended for the exploration and advancement of the James Bay niobium project in Ontario, as well as for working capital and general corporate purposes.

Key Details

• Upsized Offering Size: Maximum gross proceeds increased to C$7.5 million (up from C$5 million).
• Securities Offered:
  • Units: Priced at C$0.14 per unit. Minimum sale of 7,142,858 units required for minimum gross proceeds of approximately C$1 million.
  • Flow-Through (FT) Units: Priced at C$0.16 per FT unit.
  • Charity FT Units: Priced at C$0.21 per charity FT unit.
• Warrant Terms: Each unit (standard, FT, and charity FT) includes one common share purchase warrant. Warrants entitle the holder to purchase one common share at an exercise price of C$0.20. Warrants are exercisable for 36 months following the closing date.
• Over-Allotment Option: Red Cloud Securities has an option to sell up to an additional C$1 million in any combination of units, FT units, and charity FT units at their respective offering prices. This option is exercisable up to 48 hours prior to closing.
• Use of Proceeds:
  • Exploration and advancement of the James Bay niobium project (Ontario).
  • Working capital and general corporate purposes.
  • FT share proceeds specifically used to incur eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures related to the James Bay project.
• Renunciation Date: All qualifying expenditures will be renounced in favour of subscribers of FT units and charity FT units effective December 31, 2025.
• Closing Date: Scheduled for December 18, 2025, or such other date as agreed upon by the corporation and Red Cloud.
• Regulatory Conditions: Completion is subject to regulatory approvals, including approval from the TSX Venture Exchange.
• Jurisdictions: Offered to residents of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan under the listed issuer financing exemption. Also available in offshore jurisdictions and the US on a private placement basis.
• Hold Period: Securities not issued under the listed issuer financing exemption are subject to a hold period in Canada ending four months plus one day following the closing date.

Notable Quotes

• No direct quotes from management were included in the provided text.