Niocan raises funds

Junior Niocan (NIO-T) is raising a minimum of $1.3 million via a private placement, with proceeds earmarked for work at the Oka niobium project, west of Montreal, Que.

Privately held investment company Electrum Ferrometals has subscribed for 2 million units.

A single unit comprises one Niocan share priced at 65, a half-warrant exercisable at 80 per share within 30 months, and a half-warrant exercisable at $1 per share within 30 months.

When the deal is closed in mid-August, Electrum will gain a seat on Niocan’s board of directors.

Niocan will use a portion of the funds to finance an ongoing bankable feasibility study at Oka.

The company hopes to be granted a certificate of authorization from Quebec’s Environment Ministry before winter.

Already, Niocan has obtained an operating permit on 9.4 ha of agricultural land from Quebec’s Agricultural Land Protection Commission, as well as a mining lease and permits for a tailings facility, issued by the Ministry of Natural Resources.