PERTH (miningweekly.com) – ASX- and TSX-V-listed Jervois Mining has raised A$45-million through a share placement to order long lead items for its Idaho cobalt operation, and to fund detailed engineering and ongoing site costs.
The share placement comprised more than 147.5-million shares, issued at a price of 30.5c each, with Jervois saying on Tuesday that the placement had been significantly oversubscribed.
The issue price represented a 1.2% discount to Jervois’ ten-day volume weighted average share price.
An initial 147.5-million shares were placed to institutional and sophisticated investors under the company’s existing placement capacity, with company directors and senior management also subscribing for some 5.7-million new shares.
A further 18.85-million shares will be placed following shareholder approval, with the company’s annual general meeting scheduled to take place at the end of November.
In addition to funding long-lead items at the Idaho cobalt operation, funds from the capital raise will also be used at the nickel/cobalt refinery in Sao Paulo, in Brazil, including the purchase deposit, lease payments and restart feasibility study costs.
Jervois will acquire the São Miguel Paulista nickel and cobalt refinery from Companhia Brasileira de Aluminio – a subsidiary of Votorantim – for $22.5-million, payable in tranches.
A feasibility study to restart the refinery, including the processing of Idaho concentrate, would start in the fourth quarter.