Jervois prices A$100m bond for cobalt start
PERTH (miningweekly.com) – ASX- and TSX-listed Jervois Mining has secured a $100-million bond offering to fund the construction of its Idaho cobalt operations, in the US.
The bonds are US dollar denominated and have a five-year term, unless repurchased or redeemed, bearing a 12.5% a year interest, payable semi-annually in arrears.
The bond issue is repayable in mid-2026 and preserves commercial flexibility through the construction of the Idaho project by not obliging Jervois to commit to cobalt supply early, the company said.
The bond offering will occur on July 20, with the first two drawdowns of 50% of the bond funds from the escrow account expected in the fourth quarter of this year, following the satisfaction of conditions precedent.
Jervois told shareholders on Monday that the proceeds from the bond issue would be used to fund the construction of the Idaho cobalt operation, where commercial concentrate is expected from mid-2022.
The company would continue with plans to process concentrate from the Idaho cobalt operations at its São Miguel Paulista refinery, subject to Jervois completing the acquisition of that project and successfully restarting the refinery in stages during 2022 and 2023.
The company is planning to sell the refined cobalt product to key customers across the US, as well as potentially Europe, Japan and South Korea.
The Idaho cobalt project will require a capital input of some $78.4-million to get into production, producing 1 200 t/d over a seven-year mine life.
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