Although the markets have been a bit volatile there are still certain stocks that have managed to hold their own amidst all the chaos and one of those is the NioCorp Developments Ltd (OTCMKTS:NIOBF) stock. The stock of the rare earth mining company was in sharp focus yesterday following a key announcement and had ended up with gains of as much as 14%.
Trading Data
On Monday, NIOBF stock moved up 14.23% to $0.8935 with more than 828.43K shares, compared to its average volume of 139.94K shares. The stock moved within a range of $0.7950 – 0.9200 after opening trade at $0.7950.
Rare earth miner NioCorp to merge with Nasdaq-listed blank check firm
The company announced yesterday that it was going to be merged with the blank check company GX Acquisition Corp II. By way of this merger, the company is going to get access to as much as $285 million in fresh funds for the purpose of developing the Elk Creek Project located in the Southeastern region of Nebraska.
It was a major new announcement from NioCorp and the availability of such a substantial amount of cash for the development of the property must have been the trigger for the rally in the stock. The merged entity is going to command a valuation of $313 million. In addition to that, NioCorp also announced that it had inked a pair of letters of intent in relation to two separate financial packages. Those packages will provide $81 million more for the development of the project.
Technical Data
NIOBF stock is trading above the 20-Day and 50-Day Moving averages of $0.80 and $0.77 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.73. The company has a total market capitalization of $248 million.
