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Jervois raises A$16.5m

28th June 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Jervois Mining has raised A$16.5-million through an over-subscribed share placement.

The company earlier this week launched the equity raise, targeting proceeds of A$15-million, offering shares at an 8% premium to the underlying market price of the company’s shares.

Jervois noted that on the back of strong demand from current and new institutional investors, as well as from the company’s management and board, the decision was taken to increase the financing size by a maximum of 10% and raise total gross proceeds of A$16.5-million.

The company placed 82.5-million shares at a price of 20c each, with more than 40.5-million of the shares to be issued under the existing placement capacity. The balance of the share placement will be subject to shareholder approval at a general meeting on July 18.

The company on Friday told shareholders that it was pleased with the strong response from institutional investors, which showed strong support for the proposed merger with Canadian firm eCobalt.

The share placement is conditional on the completion of the eCobalt merger.

Under the terms of the agreement, each eCobalt share will be exchanged for 1.65 common shares in Jervois, representing an implied offer price of C$0.36 an eCobalt share. The transaction will see Jervois issue some 262.4-million new shares, and if all eCobalt options and warrants were exercised, a further 47-million shares.

Jervois is developing the Nico Young nickel/cobalt project, in New South Wales, as well as the Kilembe and Bujagali base metals projects, in Uganda.

Edited by Creamer Media Reporter

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