NioBay Metals Announces Upsize of Brokered LIFE Offering and Concurrent Private Placement to Gross Proceeds of Up to C$7.5 Million

On December 3, 2025, NioBay Metals announced an upsize to its previously announced (December 1, 2025) brokered private placement, increasing the gross proceeds from up to C$5.0 million to up to C$7.5 million. The offering, led by Red Cloud Securities Inc., consists of three types of units: - Hard dollar Units at C$0.14, each comprising one common share and one common share purchase warrant. - Flow-Through (FT) Units at C$0.16. - Charity Flow-Through (Charity FT) Units at C$0.21.

All warrants included in the offering are exercisable at C$0.20 for a period of 36 months. The proceeds will be used for exploration and advancement of the James Bay Niobium Project, as well as for working capital and general corporate purposes.

The upsized financing is a necessary and expected event, but it is highly dilutive to existing shareholders. A review of the company's Q3 2025 financials (filed November 27, 2025) revealed a cash position of C$2.3 million and a nine-month operating cash burn of approximately C$3.0 million (~$333k/month). This indicated a cash runway of less than seven months, making a capital raise imperative to avoid insolvency.

The financing, priced at C$0.14 per unit, aligns with the stock's closing price on December 1, the day of the initial announcement, which represents a significant discount from the October highs. The stock fell from C$0.17 to C$0.14 on the news, indicating the market's negative reaction to the dilution. While upsizing the offering from C$5.0 million to C$7.5 million suggests healthy demand, it also exacerbates the dilution.

Positively, this C$7.5 million injection secures the company's financial position for approximately the next two years at the current burn rate. It provides the necessary capital to advance its two key projects: the recently permitted James Bay Niobium Project and the Crevier Niobium and Tantalum Project.

From a risk-averse perspective, this news is neutral. It removes the immediate going-concern risk but introduces a significant share and warrant overhang that will likely cap share price appreciation in the medium term. The company has traded short-term survival for long-term dilution. The focus now shifts from financing risk to execution risk.

NioBay Metals is a Canadian mineral exploration company focused on critical metals. It has a portfolio of three main projects: 1. James Bay Niobium Project (Ontario): This is the company's flagship asset. It is a niobium project for which the company received a long-awaited exploration permit in October 2025, after a suspension requested by the Moose Cree First Nation in March 2022. The project has a mining lease valid until October 2028. 2. Crevier Niobium & Tantalum Project (Quebec): NioBay holds a 72.5% interest. The company is actively de-risking this project through drilling, metallurgical work, and pilot plant testing. It has successfully produced niobium and tantalum oxide samples for potential customers, targeting the battery and high-tech industries. 3. Foothills Titanium Project (Quebec): An earlier-stage exploration asset.