(KLZA)-- Developers of a proposed niobium mine in southeast Nebraska are brushing off an announced “investigation” by a New York law firm over its delayed annual financial report for 2022-23.
The firm, Pomerantz LLP, bills itself as a “premier firm” in the areas of corporate litigation, and stated in a press release earlier this month that it was probing whether NioCorp and its officers or directors “engaged in securities fraud or other unlawful business practices.”
A spokesman for NioCorp and a former board member of the project dismissed the probe as “trolling for clients” to file a lawsuit.
Former State Sen. Tony Fulton, who once served on the NioCorp Board of Directors, had a similar response, likening the effort by the law firm to “ambulance chasers.
NioCorp, which has obtained options on land near Elk Creek, has seen its stock price on NASDAQ drop from over $10 per share in March to $4.09 on Tuesday.
A spokesman said he could not comment on the stock price drop, but Fulton said that some investors became upset after a move by NioCorp to join with GX Accounting Corp. didn’t reap as much of an investment in the project as expected.
A critical minerals mine in southeast Nebraska has been discussed for at least five decades, and NioCorp is led by an executive, Mark A. Smith, who was involved in Molycorp, a firm that had explored the Elk Creek project 30 years ago.
But attracting the estimated $1.2 billion in investments to get the deep-rock mine off and running has proven to be challenging. At one time, Smith had said that fund raising for the Elk Creek Superalloy Materials Project would be completed by 2018.
Dozens of Nebraskans have invested in the project, placing a high-risk bet that the project will become reality. It has been promoted as creating 450 jobs with an annual payroll exceeding $1 billion.
The mine would extract and process niobium, scandium and titanium, minerals used to harden steel, make aluminum stronger and employed as a pigment in paint.
Fulton said he remains optimistic about the project, while acknowledging that it is not a sure thing.
© Many Signals Communications
MOST VIEWED STORIES
Effingham woman killed Friday in Atchison wreck
One hospitalized, one jailed, after Atchison attack
Atchison man involved in fatal NW MO crash
One injured in Nemaha Co wreck
Wetmore man arrested on child sex-related charge
Walnut Township Treasurer removed; votes unofficial until canvass
Rural Horton man arrested on multiple drug charges
Street lights to be discussed at Monday city meeting
Meteorologist Spencer: Geometric Watch means electronic disruptions
Two file to challenge local legislator
USD 430 Board accepts resignations, approves new hires
TX man to stand trial on charges in fatal Jackson Co crash
Local judge files for re-election
Atchison in running for national fireworks honors
Truck fire at CGB facility in Falls City
BC's Pate remembered by students, college family
Bridge work begins Wed in Doniphan Co
LATEST STORIES
Marshall Co Commissioner files for re-election
Contested races in Tuesday Primary Election in Nebraska
One hospitalized, one jailed, after Atchison attack
Flags to fly half staff Wednesday across KS
Two file to challenge local legislator
Atchison man involved in fatal NW MO crash
Effingham woman killed Friday in Atchison wreck