(Montreal, Québec, March 1, 2022) – Niocan Inc. (TSX-V: NIO) (OTC:NIOCF) (“Niocan” or the “Company”) announces that it has closed its previously announced conversion of $3.6 million of debt into equity (the « Conversion »). The Conversion will result in immediate interest cost savings and will place the Company in a much stronger financial position for the benefit of all shareholders.
Pursuant to the terms of the agreement entered into between the Company and Nio-Metals Holdings LLC (“Nio-Metals”), one of its principal shareholders, $3,573,521 in principal and accrued interest owing under the terms of a secured debenture initially issued by the Company to Nio-Metals on February 19, 2013 has been converted into an aggregate of 23,823,470 common shares of the Company (the “Repayment Shares”) at an issue price of $0.15 per share in full repayment thereof. Moreover, the maturity date of a loan made to the Company by Nio-Metals on March 17, 2021, in the principal amount of $500,000 has been extended from March 17, 2023 to March 17, 2024. This transaction will enable the Company to preserve its cash for use on its current and future projects and for working capital.
The Repayment Shares are subject to a four-month hold period under Canadian securities laws.
Hubert Marleau, Chairman and CEO, stated « Agreeing to this transaction is another tremendous vote of confidence by Nio-Metals, our largest and oldest investor. Niocan is in a much stronger financial position, and I am very pleased to report that we now have just $540,000 in long-term debt. »
Niocan is an exploration and development company, with a focus on sourcing strategic metals and minerals essential to advancing modern life and national security in beneficially environmental, social and ethical manner. The Company holds a niobium property in Oka, Québec and other exploration properties in the Province of Québec. Niocan’s Oka mining property consists of mining rights comprised of 49 claims covering 2,281 acres and its Great Whale property consists of surface and mining rights covering 24,944 acres on the Hudson Bay territory.
For more information on the Company, please refer to the Company’s public documents available on SEDAR (www.sedar.com) and on Niocan’s website (www.niocan.com).
For more information, please contact:
Chairman, President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (together, “forward looking statements”) within the meaning of applicable Canadian securities laws. Statements, other than statements of historical facts, may be forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or “be achieved”, the negative of these terms and similar terminology although not all forward-looking statement contains these terms and phrases. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk factors set out in Niocan’s annual and/or quarterly management discussion and analysis and in other of its public disclosure documents filed on SEDAR at www.sedar.com, as well as all assumptions regarding the foregoing. Although Niocan believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frame or at all. Except where required by applicable law, Niocan disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.