Rare earth miner NioCorp Developments Ltd said on Monday it will merge with blank-check firm GX Acquisition Corp II, giving it access to up to $285 million for the development of its Elk Creek project in southeastern Nebraska.
The Elk Creek project is targeting the production of niobium, scandium and titanium, metals that are in high demand due to their wide-ranging uses in products such as mobile phones and electric vehicles.
NioCorp’s merger with GX Acquisition values the combined company at around $313 million.
Blank-check firms raise money by listing on a stock exchange. The money is then used to merge with a private company or give a smaller company access to better exchanges.
NioCorp also said it has signed letters of intent for two financing packages providing it an additional $81 million for the Elk Creek project.
(By Ankit Kumar)