Niocan Enters into Binding Letter of Intent with Forbes & Manhattan

Niocan Inc. (TSX:NIO) reports that it has entered into a binding letter of intent with Forbes & Manhattan, Inc. (PINK:FBMCF).

The press release is quoted as saying,

F&M, its affiliates and/or assigns would provide Niocan with the lead order for a private placement of 5,157,000 common shares of Niocan at a price of $1.15 per share, which represents a 15% premium to the closing price of Niocan’s common shares on the Toronto Stock Exchange on May 3, 2011, being $1.00. The aggregate gross proceeds to the Company from the financing would be approximately $6 million. The proceeds of the private placement will be used to pay the Company’s current operating costs, and to fund the development of the Company’s assets. The Company and F&M have also agreed to work together to propose a reconstituted board of directors and the appointment of a new Chief Executive Officer of the Company.

For the complete press release, click here.