NioCorp Developments and GX Acquisition II today announced a definitive merger agreement that values the combined entity at an estimated enterprise value of $313.5 million.
Terms call for NioCorp to acquire the SPAC and list on the Nasdaq following closing, which is expected in the first quarter of 2023. NioCorp shares will also continue to be traded on the Toronto Stock Exchange.
Assuming no redemptions by the SPAC’s public shareholders, upon deal close the combined operating entity could have access to as much as $285 million in net cash.
NioCorp is developing a critical minerals project in Southeast Nebraska that will produce niobium, scandium, and titanium. The company also is evaluating the potential to produce several rare earths from the project. Niobium is used to produce specialty alloys as well as high strength, low alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Read more.
