JRV:CC - Covenant Waiver on ICO Senior Secured Bonds

(TheNewswire)

8 May 2024 - TheNewswire - Australia - Jervois Global Limited (“ Jervois ”) (ASX:JRV) (TSX-V: JRV) (OTC: JRVMF) has agreed with the majority bondholder(the “ Holder ”) of the US$100 million 12.5% Idaho Cobalt Operations(“ ICO ”) senior secured bonds (the “ ICO Bonds ”) thatthe Holder will support a waiver of all financial covenants (the“ Waiver ”) until 20 July 2024. The ICO Bonds were issued by aJervois U.S. subsidiary, secured by ICO and guaranteed by Jervois in2021 1 .

Until the Waiver is implemented, the Holder has alsoagreed to forbear remedies associated with financial covenantcompliance.

To be implemented, the Waiver requires approval of atleast 2/3 of the principal amount of the ICO Bonds. The process toobtain the necessary written resolution of the ICO bondholders willcommence shortly and is expected to be passed, as the Holder hasagreed that its more than 2/3 of the principal amount of the ICO Bondswill approve the Waiver.

Jervois is working in conjunction with its majorlenders on potential transactions to strengthen Jervois’ balancesheet. Concurrently, Jervois continues to focus on cost reductionsacross its portfolio. This has included a significant, 30%, reductionin senior corporate management roles. In addition, Non ExecutiveDirectors unanimously agreed to reduce their cash compensation also by30%.

Other than the Waiver, there are no changes proposed toterms of the ICO Bonds, including coupon, security or guaranteearrangements. The ICO Bonds also continue in the ordinary course to besubject to no principal repayment until the end of their existing5-year term in July 2026.

On behalf of Jervois Global Limited

Bryce Crocker, CEO

For further information, please contact:

Forward-LookingStatements

This news release may containcertain “Forward-Looking Statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andapplicable Canadian securities laws. When used in this news release,the words “anticipate”, “believe”, “estimate”,“expect”, “target, “plan”, “forecast”, “may”,“schedule”, “expected” and other similar words or expressionsidentify forward-looking statements or information. Theseforward-looking statements or information may relate to the approvalof the Waiver by ICO Bondholders, strengthening of the balance sheetand certain other factors or information. Such statements representJervois’ current views with respect to future events and arenecessarily based upon a number of assumptions and estimates that,while considered reasonable by Jervois, are inherently subject tosignificant business, economic, competitive, political and socialrisks, contingencies and uncertainties. Many factors, both known andunknown, could cause results, performance or achievements to bematerially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements. Jervois does not intend, and does not assume anyobligation, to update these forward-looking statements or informationto reflect changes in assumptions or changes in circumstances or anyother events affections such statements and information other than asrequired by applicable laws, rules and regulations.

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.

1 See JRV ASX Announcementdated 5 July 2021

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