A mining company has announced an agreement that will provide up to $285 million to help cover the roughly $1.1 billion cost of developing the mine. The company wants to extract a variety of rare elements from southeast Nebraska.
NioCorp announced Monday that it had acquired GX Acquisition Corp. II, a special purpose acquisition company. And that it had also signed letters of intent with Yorkville Advisors Global to borrow up to an additional $81 million from the Centennial, Colorado-based business. NioCorp might therefore receive up to $366 million to fund the project.
“These deals have the potential to put NioCorp on the fast track to achieve the essential project funding,” said Mark Smith, CEO of NioCorp.
A Heat Resistant Element Niobium, along with scandium and titanium, is the primary element NioCorp intends to produce at the mine located about 80 miles (130 kilometres) south of Omaha close to the town of Elk Creek. The Study of samples from the site reveals that there are also considerable amounts of rare earth elements. The President Joe Biden wants to increase domestic production . However, it’s unclear at this time if it will be economically viable to also generate some of the components necessary to make the powerful magnets found in a number of high-tech items, including electric cars and cell phones.
“According to Biden, the United States has to rely less on foreign countries for the supply of essential minerals”. The largest producer of rare earth elements worldwide is China.
NioCorp Mining Aim
NioCorp should be able to assist with Biden’s goal, according to Dean C. Kehler, Co-Chairman and CEO of GXII. “If it can raise the remaining funds required to start producing niobium, scandium, and maybe rare earth elements“.
We think NioCorp is in a good position to be a trustworthy US supplier that will make these products sustainably, Kehler said.
Since some investors may withdraw their funds from the GXII before the deal closes early next year. It won’t be obvious just how much money this transaction will deliver NioCorp until closer to that time.
GXII is a dangerous shell company, or SPAC. That recently rose to prominence on Wall Street before losing favour and needing to be liquidated without ever concluding a transaction. A SPAC is essentially a corporation established with no specific purpose other than to merge with another firm and invest in it.
The NioCorp is already a publicly listed company. Despite the fact that SPACs are frequently use to assist firms go public.
However, This purchase is anticipated to grant it a listing on the NASDAQ. Which would help it draw in additional investors. For more than seven years, NioCorp has been actively investigating the Nebraska location, and since 2013. It has raised more than $80 million to support those efforts.
The mine is ever complete, It is anticipate to generate approximately 400 employment.
All of the niobium, scandium and The majority of the titanium and rare earths that NioCorp expects to generate are imported into the United States. Currently Just one Californian mine in the United States makes rare earths. The only other deposit of rare earth elements, According to NioCorp, is at MP Materials’ Mountain Pass mine in California.