Jervois completes first part of funding drive

28th July 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Triple-listed Jervois Mining has raised some A$136-million following the completion of an institutional placement and the institutional component of its entitlement offer.

The company earlier this week announced a A$313-million equity raise comprising an A$87-million institutional placement and a A$226-million 1-for-1.56 accelerated prorate non-renounceable entitlement offer to fund the acquisition of Finland-based Freeport Cobalt for $160-million and the development of its Idaho Cobalt Operations, in the US.

Jervois on Wednesday said the placement and institutional entitlement offer were strongly supported by new and existing domestic and offshore institutional investors, including the introduction of strategic investors to support the transformational acquisition of Freeport Cobalt.

Under the placement, some 197-million Jervois shares will be issued at a price of A$0.44 a share to raise approximately A$87-million, while the institutional entitlement offer would see around 113-million Jervois shares being issued at a price A$0.44 a share to raise approximately A$50-million.

The retail component entitlement offer is fully underwritten and will raise an additional A$177-million, and will close on August 25. Together, the combined proceeds of the equity raising are expected to total A$313-million.

Jervois said on Wednesday that following completion of the equity raising and acquisition of Freeport Cobalt, the company will be a global leader in refined cobalt production with an expanded shareholder base exposed to significant value creation potential possible through the technical and commercial synergies present with its existing assets.