(TheNewswire)
Jervois Mining Limited ACN: 007 626 575 ASX/TSXV: JRV OTCQB: JRVMF Corporate Information: 802.7M Ordinary Shares 91.3M Options 0.4M Performance Rights Non-Executive Chairman Peter Johnston CEO and Executive Director Bryce Crocker Non-Executive Directors Brian Kennedy Company Secretary Alwyn Davey Contact Details Suite 508, 737 Burwood Road Hawthorn East Victoria 3122 Australia P: +61 (3) 9583 0498 E: admin@jervoisglobal.com W: www.jervoisglobal.com | Highlights
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July 30, 2021 - TheNewswire - Australia (ASX:JRV) (TSXV:JRV) (OTC:JRVMF)
CORPORATE UPDATE
Liquidity
Jervois ended the June 2021quarter (“ Q2 ”) withA$33.3 million in cash. The loan from the United States(“ U.S. ”) government ofA$0.1 million relating to COVID-19 stimulus payroll protection wasforgiven during the quarter.
Expenditure on exploration and development for thequarter was immaterial as activities at Idaho Cobalt Operations(“ ICO ”) are nowclassified as Assets Under Construction; expenditure of A$3.2 millionwas incurred in the quarter.
In Brazil, lease payments for the São Miguel Paulista(“ SMP ”) Refinery wereR$4.5 million for Q2 (being monthly payments of R$1.5 million) andwill continue to occur up to Closing. Brazilian developmentexpenditure associated with the Ausenco led Bankable Feasibility Study(“ BFS ”), excluding thelease payment, totalled A$1.1 million during the quarter.
After 30 June 2021, and prior to settlement of thebonds on 20 July 2021, A$24.1 million was transferred to the EscrowAccount and Debt Service Account held by Jervois Mining USA Limited inaccordance with the bond terms.
Acquisition of Freeport Cobalt and EquityFunding
On 27 July 2021, Jervois announced it has agreed toacquire 100% of Freeport Cobalt by purchasing all the shares ofFreeport Cobalt Oy and four affiliated entities from KobolttiChemicals Holdings Limited (“ KCHL ”) (the “ Acquisition ”).
Freeport Cobalt is the Kokkola, Finland-based cobalt refining and specialty products business
retained by Freeport-McMoRan (“ Freeport ”) and certainco-owners following the sale of certain refining and battery materials activities to Umicore in 2019. The Freeport Cobalt business consists of:
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- a capacity sharingagreement with Umicore forthe 15,000 mtpa cobalt refinery in Kokkola, Finland (which is operated by Umicore) under which Freeport Cobalt has contractual rights to toll refine 6,250 mtpa cobalt at cost until 2093;
- long-term contracts with leading global suppliersof cobalt hydroxide, consistent with commitment to best practice responsible sourcing framework; and
- a downstream cobalt products manufacturing facility with an establishedmarketing platform and long-term global customer base servicingclients primarily across Europe, the United States and Japan.
The Acquisition is expected to transform Jervois into aglobal, vertically integrated cobalt and nickel company of scale, led by a highly experiencedmanagement team. Post-acquisition, Jervois will be diversified across multiple products and value chain segments
with significant relevance to leading cobalt producers and end-users.
Jervois’ acquisition of Freeport Cobalt also providesthe Company with an established global market platform from which tooperate. The industrial logic and strategic rationale for theAcquisition is compelling, with value for Jervois shareholdersexpected to be created through technical and commercial synergies withICO and SMP operations.
The purchase price for Freeport Cobalt is asfollows:
- base consideration of US$160 million (including US$75million of net working capital), subject to customary adjustments, tobe paid in cash at closing of the Acquisition; and
- an additional cash payment of the working capital inFreeport Cobalt above US$75 million, at the closing of theAcquisition; and
- contingent consideration of up to US$40 million,payable in cash up to US$10 million per year based on FreeportCobalt’s financial performance from 2022 through to 2026, andthrough a “catch up” amount based on Freeport Cobalt’s aggregatefinancial performance during that period.
The Acquisition is expected to close at the end ofAugust 2021.
To fund the Acquisition and ICO development, Jervoishas entered an underwriting agreement providing a fully-underwrittenA$313 million equity raising by issuance of new Jervois ordinaryshares consisting of a ~A$87m institutional placement (the" Placement ") anda ~A$226 million 1 for 1.56 accelerated pro-rata non-renounceableentitlement offer (the “ EntitlementOffer ”).
Approximately A$136 million was raised across thePlacement and Institutional Entitlement Offer at an offer price ofA$0.44 per share. The Retail Entitlement Offer is fully underwrittenand will raise an additional A$177 million. Together, the combinedproceeds of the equity raising are expected to total A$313million.
ICO Debt Financing
In July, Jervois announced it had priced and closed thebooks on its subsidiary’s offering (the “ Bond Offering ”) of senior securedbonds in the aggregate principal amount of US$100 million, guaranteedby Jervois (the “ Bonds ”). Proceeds from the bond issue will be used to fundconstruction of ICO in the U.S.
Clarksons Platou Securities AS (“ Clarksons ”) acted as managers for theNordic-style Bond Offering, launched as a private placement seekingproceeds of US$80-100 million. The Bonds areU.S. dollar denominated with a five-year term, unless repurchased orredeemed, and bear interest at 12.5% per annum, payable semi-annuallyin arrears, and were issued at a discount to par of 2%. The Bondsare debt instruments only, with no attached equity warrants or equityconversion features.
The Bonds will be senior debt of Jervois Mining USALimited (the “ Issuer ”), an indirect wholly-owned U.S. subsidiary of Jervois andowner of ICO, and will be guaranteed by Jervois. The Bonds will besecured on a first priority basis by
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(i) a share pledge over all theshares of the Issuer,
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(ii) a pledge over all loans byand between any of the Issuer, Jervois and/or Jervois’ directwholly-owned U.S. subsidiary which owns all the shares of the Issuer,and
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(iii) security over all materialassets (tangible and intangible) of the Issuer, such as the EscrowAccount, among other things.
Net proceeds from the Bond Offering will, upondisbursement to the Issuer from the Escrow Account, be used for thepayment of capital expenditures, operating costs and other costsassociated with the construction of ICO and bringing it intoproduction. First production from ICO continues to be expected frommid-2022.
The issue date of the Bond Offering was 20 July2021.
Upon satisfaction of certain conditions precedentcustomary for these types of transactions, the net proceeds of theBond Offering will be placed into a U.S. dollar denominated escrowaccount of the Issuer (the “ EscrowAccount ”). These conditions precedentinclude, without limitation, funding of the Escrow Account by theIssuer such that upon deposit in the Escrow Account of the netproceeds of the Bond Offering, the aggregate sum held on deposittherein (the “ Bond Funds ") will equal 101% of the aggregate principal amount ofthe Bonds.
The first of two (2) drawdowns of 50% of the BondsFunds from the Escrow Account is anticipated in Q4 2021, followingsatisfaction of the conditions precedent to Withdrawal from EscrowAccount.
Jervois is not required to enter into any externaloff-take agreements for ICO concentrates, except in certain limitedcircumstances at a later date, under the Bond Terms. The Companywill continue with plans to process the concentrates at the SMPrefinery, subject to Jervois completing its SMP acquisition andsuccessfully restarting the refinery in stages during 2022 and 2023. Jervois’ commercial team plans to sell refined cobalt productsfrom SMP to key customers across the U.S., and potentially Europe,Japan and South Korea. This sales strategy is expected to maximisevalue for shareholders versus committing to an early sale ofsignificant volumes of ICO cobalt concentrates in external off-takeagreements. The Company continues discussions with concentratecustomers and for commercial reasons may elect to place limited volumeof concentrate externally. The cobalt circuit at SMP is expected to be restarted in 2022 on cobalt hydroxidefeedstock, the same material as was previously purchased and refinedby the facility.
Customer interest in ICO cobalt in a refined form fromSMP is high, reflecting its uniqueness as the only cobalt mined in theU.S. at a time of an increasing focus on ESG standards and security ofsupply chain risk for critical minerals from geopoliticalinfluences.
Jervois has had positive conversations with the U.S.Government prior to this comprehensive review about the importance ofa U.S. domestic source of cobalt and ICO’s financing requirements. Jervois will continue to advance these discussions on appropriateforms of funding support for ICO and/or Jervois as the policyprescriptions stemming from the review are reflected in the prioritiesof U.S. Government funding agencies. Jervois may pursue financingoptions for ICO and/or other parts of its business with the U.S.Government that can either be implemented in addition to the Bonds, bemade available prior to Bond drawdown, or to refinance all or part ofthe Bonds, in each case in accordance with the Bond Terms.
During Q2 2021, Jervois participated at the U.S.Department of Commerce’s invitation in a roundtable discussion onAdvanced Battery Industry Development, hosted by the U.S. DeputySecretary of Commerce Donald Graves. Jervois was pleased to provideits perspective on the importance to the U.S. auto industry of acompetitive and secure domestic battery supply chain. The roundtabletook place as part of SelectUSA, the keystone investment attractionsummit run the U.S. Government, in which CEO’s and senior politicalleadership worked to advance key projects in the U.S. sponsored byinternational partners such as Jervois. The discussion was alignedwith the Biden Administrations release of its findings of a 100-dayreview of vulnerabilities in U.S. critical minerals supply chains,including cobalt.
Board and Management Appointments
On 27 July 2021, Jervois announced it will appointDavid Issroff as a Non-Executive Director effective 3 September 2021following the completion of the acquisition of Freeport Cobalt.
Mr Issroff was a founding Partner with GlencoreInternational AG (“ Glencore ”), having joined Glencore South Africa in 1989. In 1992,he transferred to Glencore’s head office in Switzerland withresponsibility for the marketing of ferroalloys (including nickel andcobalt). In 1997, he was appointed Head of the Ferroalloys Divisionat Glencore International AG, where he was responsible for the globalFerroalloys (including ferrochrome, manganese alloys, ferrosilicon andvanadium), Nickel and Cobalt Divisions of one of the world’s largestsuppliers of a wide range of commodities to industrial consumers. MrIssroff was also responsible for asset oversight within the divisionhe operated and has extensive experience in optimizing operatingassets with a trading element.
In his capacity with Glencore, Mr Issroff served as aNon-Executive Director of investment companies across South Africa,Switzerland and the United Kingdom. In May 2000, Mr Issroff joined the Board of Xstrata AG, and was subsequentlyappointed to the Board of Xstrata plc in February 2002 at the time ofthe London Initial Public Offering (“ IPO ”).
Mr Issroff left Glencore and the Xstrata plc Board in2006 for personal reasons to relocate to the United States, where heremains based today.
Jervois announced on 12 July 2021 the announced thatexperienced mining executive Matthew Lengerich will be joining asExecutive General Manager (“ EGM ”) – Mining.
Mr Lengerich joins Jervois from global miner Rio Tinto,where he has spent more than 20 years in a range of roles, with hislast position as General Manager – Digital Transformation, based inSalt Lake City, Utah. Over the past four years, Mr Lengerich hasbeen a key leader of Rio Tinto’s efforts to advance its capacity inartificial intelligence, data analytics and mine productivity acrossits global operating sites.
Prior to these specialised mining technology roles, asGeneral Manager of Rio Tinto Iron Ore’s integrated operations centrein Perth, Australia, Mr Lengerich had responsibility for 450 staff incentral control, executing dynamic scheduling and maintaining theproduction systems associated with the delivery of 320Mtpa of iron orefrom Western Australia. This product was sourced from 15 mines, andtransported through 1,700km of rail network and four independentports, by the remote operating team.
Earlier, Mr Lengerich was General Manager of theBingham Canyon Mine near Salt Lake City, a major Rio Tinto mine moving260Mtpa of material to produce 300,000tpa copper. Mr Lengerich ledthe site team of 1,100 employees. Bingham Canyon remains aworld-class operation with industry leading geotechnical engineering,safety and asset performance, and life of mine planning. Prior tothe General Manager role, Mr Lengerich was Bingham Canyon’s MineManager for two years.
Mr Lengerich will be responsible for all of Jervois’mining activities globally and will remain based in the United States. In addition to EGM Mining, he will also fulfil the role of Acting GM– ICO, until the mine is constructed and commissioned.
Insider Compensation Reporting
During the quarter A$0.06 million was paid toNon-Executive Directors. A$0.12 million was paid to the CEO(Executive Director) during the quarter.
Investor Relations
During the quarter, Jervois participated at theJefferies Renewable Energy Conference: From the Mine to the Market,with CEO Bryce Crocker and CFO James May participating in a paneldiscussing Cathode Materials and Battery Technology, which was heldvirtually on 25-27 May. They also participated in 1-1 investormeetings.
In June, Mr Crocker participated in the opening panelat the TD Securities Battery Metals Virtual Roundtable on 22 June2021, and Mr Crocker and Mr May hosted 1-1 investor meetings duringthe event.
2021 Annual General Meeting
The 2021 Annual General Meeting (“ AGM ”) of Jervois shareholders washeld on 29 July 2021 at 10.00am Australian Eastern Standard Time(“ AEST ”). All of theresolutions were passed.
OPERATIONAL UPDATES
Idaho Cobalt Operations (“ICO”), United States
Jervois’ Board approved final construction of ICO inearly July following its senior secured Bond Offering to raise US$100million (as earlier described). Upon satisfaction of conditionsprecedent, which is expected in Q4 2021, they will be used for thepayment of capital expenditures, operating costs and other costsassociated with the construction of ICO and bringing it intoproduction. First production from ICO continues to be expected frommid-2022.
The properties upon which the mine and mill aresituated in the U.S. National Forest lands managed by United StatesForest Service (the “ USFS ”). Jervois controls 100 percent of the unpatented miningclaims over this land, consisting of 313 unpatented lode miningclaims. All activities at ICO adhere to the USFS and EnvironmentalProtection Agency requirements. The site is environmentally permittedwith an approved Plan of Operations.
Prior to initiating final construction, Jervois commissioned DRA Global and itssub-consultants, M3 Engineering (“ M3 ”), to prepare an updatedAustralian JORC Code 2012 Edition Bankable Feasibility Study(“BFS”) and Canadian National Instrument 43-101 Feasibility Studyon ICO, the results of which were announced on 29 September2020.
The detailed design package of work has beenprogressing well with M3 Engineering. Equipment orders have beenplaced on long lead items including the primary crusher and feeder,SAG mill, variable speed drives, flotation cells and blowers. Inaddition to long lead items, other equipment such as electricalreticulation and MCC housing, cyclones, concentrate foundations, beltmagnets and scales have also been ordered. Enquiries for thickenersand disc filters are currently in the market. Commitments are onschedule with no significant price difference between pricing from theBFS and actual market pricing received to date. All orders are inline with the execution schedule which shows all equipment will be onsite by November 2021 for construction execution.
The site early works package of work has progressedwell and has started with mobilisation of local contractors to assistin the final assembly of the water treatment plant on site. The M3construction manager is now on site and supervises all site activitywhich will progressively increase as the schedule dictates in comingweeks and months. The early works focus is to finalise siteestablishment during summer so construction of the process plant and the mining of the portal anddevelopment can take place in the North American winter. Activitiesinclude the commissioning of the water treatment plant and pump backsystem, laying of concrete foundations, erection of the mill andflotation buildings, the laying of a HDPE liner for the dry stacktailings facility and the construction of an accommodation camp. Allthese activities which will be executed through summer and completedby end Q3 2021.
Jervois has developed detailed plans to operate ICO inan environmentally responsible manner.
Demonstration by Jervois of its ability to constructand operate safely for the environment, together with necessarydrilling success once underground access has been opened (to bothconvert existing and future mineral resources into mine reserves) areexpected to positively support discussions with the USFS and otherU.S. regulators regarding a future expansion utilizing the currentlydisturbed site footprint.
Jervois has awarded Metso Outotec the design,fabrication and delivery contract for a 4.7m diameter and 2.5m-long750kW SAG (semi-autonomous grinding) mill. The mill will comfortablyaccommodate the nameplate 1,200stpd processing capacity cap applied inthe ICO BFS, which is based on the Company’s currently approved Planof Operations. Delivery of the Metso Outotec SAG mill to site inIdaho is planned and on schedule for Q4 2021.
Site early works are well underway, with fullconstruction to commence on the ground in September 2021. ICO willcreate approximately 200 local construction jobs and 180 operationalpositions once the site transitions into commercial operation.
Site early works include:
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- Limited remaining earthworks and concrete design andexecution;
- High density polyethylene lining installation on thewaste storage facility base;
- Commissioning of the wastewater treatmentplant;
- Constructing and commissioning of a pump backsystem;
- Constructing an accommodation camp (a 100 person camphas been purchased from a local vendor in Boise, Idaho);
- Bolting and meshing of the portal and extensionearthworks of the portal bench; and
- Erecting buildings which will allow construction tocontinue over winter.
All these activities have been designed and are invarious stages of execution on the site.
The mine site is equipped with all requiredinfrastructure including access roads from both Salmon and Challis,full grid power (at less than U.S. 5 cents per kwh; Idaho Power has offered ICO 100% renewable power from 2023, thefirst full year of mine and mill operation), a bore field for watersupply, communications and all site earthworks and terracing, asillustrated in the following site overhead photograph.
Final construction of ICO will include developing anunderground mine over a period of 10 months starting in September2021, which is scheduled to deliver first ore to an operational millin July 2022. Development of the mine is being executed by SmallMine Development (“ SMD ”), based in Battle Mountain, Nevada. SMD alsoparticipated in the mine design and costing for the updatedBFS.
Idaho State Tax Reimbursement Incentive
Jervois received approval for the Idaho TaxReimbursement Incentive (“ TRI ”) for ICO.
The Idaho TRI aims to encourage businesses to invest inthe state. It is a policy tool selectively applied by the State ofIdaho to attract and grow new businesses of scale and significance tothe economy, such as Jervois. Program eligibility is determinedbased on capital investment thresholds, the level and quality of jobcreation together with positive economic impacts, both locally andmore broadly across the state of Idaho.
To receive the TRI, Jervois will create 164 new jobs inIdaho at an average wage of above the Lemhi County average. Theaward of the TRI to Jervois recognizes the approximately US$100million of investment thus far into the mine site over more than adecade by its local subsidiary, Jervois Mining USA.
For Jervois, Idaho boasts a skilled workforce, stronginfrastructure and competitive low carbon energy costs.
Positive engagement with host communities and localstakeholders is critical for Jervois, wherever it operates. Thisarrangement was originally recommended by Lemhi County, in which ICOis located, and was recently unanimously approved by the IdahoEconomic Advisory Council. Jervois is pleased with the partnershipbetween Lemhi County and the State of Idaho, and believes it reflectspositively on the Company’s standing in Idaho and its relationshipwith residents and governmental authorities, both across the state andspecifically in Lemhi County.
Jervois and Idaho Conservation League initiate UpperSalmon Basin Restoration Projects
In June 2021, the Company and the Idaho ConservationLeague (“ ICL ”)confirmed the selection of three initial restoration projects as partof the Upper Salmon Conservation Action Program’s (“ USCAP ”) inaugural round. Followingthe request for proposals in the spring, the USCAP funding committeeselected three proposals totalling US$150,000 from a competitive poolof applicants.
The USCAP was created in partnership with ICL andJervois in March 2021 to support protection and restoration of fishand wildlife habitats including water quality, and biodiversity within the Upper Salmon River Basin. Jervoiswill contribute US$150,000 annually to USCAP throughout theoperational life of ICO in Lemhi County, Idaho.
The Lemhi Soil and Water Conservation District receivedUS$85,000 to move a problematic diversion on the Lemhi River toadvance an extensive fish habitat restoration project. This area hasbeen identified as critical habitat for juvenile Chinook salmon andsteelhead.
The USCAP selected White Clouds Preserve for US$35,000in funding to conduct riparian restoration work. The non-profitmanages a 432-acre former ranch along the East Fork of the SalmonRiver. Endangered Species Act-listed Chinook salmon, steelhead andbull trout spawn and rear their young in the East Fork. The grantwill be implemented in collaboration with the Shoeshone-Bannock tribesand local native plant experts, to enable the White Clouds Preserve tomonitor and restore critical salmon and steelhead populations alongthe East Fork, near its confluence with the Main Salmon River.
The Western Rivers Conservancy received US$30,000 toassist with acquiring a key parcel of land along Panther Creek, amajor tributary of the Salmon River. This action is an importantstep in the recovery of spawning and rearing habitat for endangeredfish. The next call for proposals for the 2022 USCAP funding cyclewill be announced in Q4 2021.
São Miguel Paulista (“SMP”) nickel and cobaltrefinery, Brazil
In April 2021, the Company announced it had appointedAusenco as BFS lead contractor for São Miguel Paulista(“ SMP ”) nickel andcobalt refinery in Brazil. Ausenco subsequently engaged MetsoOutotec to lead testwork and piloting to support engineering andequipment selection. The introduction of Metso Outotec assubcontractor for the processing component of the BFS creates anexceptionally strong and capable team. Metso Outotec was theoriginal designer and engineering lead during construction of the SMPrefinery.
The SMP BFS will be delivered in stages, with MetsoOutotec playing a key role in both phases.
Stage 1 is a measured restart treatinghydroxy-carbonate, mixed hydroxide and cobalt hydroxide productpreviously processed commercially at the refinery to produce over10,000mtpa and 2,000mtpa of nickel and cobalt refined productsrespectively. Prior to being placed on care and maintenance, SMP’sannual refined production capacity for these products was 25,000mtpanickel and 2,000mtpa cobalt. BFS for Stage 1 of the restart will becompleted by the end of Q3 2021.
Promon Engenharia (“ Promon ”) prepared detailed plant andrefurbishment cost estimates and schedules to support execution ofthis first phase of the SMP refinery restart. The outcomes from thePromon integrity audit were used as a guide to the refinery plant andequipment refurbishment. No major refinery process modifications areanticipated for stage 1.
Stage 2a allows for the integration of a PressureOxidation (“ POX ”)circuit to process both ICO cobalt concentrates, and Stage 2b will addadditional third-party supply in the form of sulphide concentrates,with 5,000mtpa of contained nickel. The POX autoclave circuit willindependently leach sulphide concentrates that will be discharged intothe existing, operating refinery. Stage 2a and 2b of the BFS areforecast to be completed at the end of 2021.
Metso Outotec’s role as subcontractor will supportAusenco as lead engineer and ensure Outotec’s historical involvementin SMP’s original design criteria, and more recent organizationalPOX project experience through to battery grade metals, will beleveraged to fast track the refinery restart and manage risk. Whilstthe headline capacity of SMP remains significantly above Jervois’sStage 2 restart scale, a measured approach is intended to balancerestart risk and upfront capital.
Jervois announced its acquisition of the SMP refinerylast year as part of its strategy to become a vertically integratedproducer of nickel and cobalt. The transaction provides Jervois withsite access during 2021 to complete the BFS, with closing subject tothe satisfaction of usual conditions, expected to be completed byDecember 2021.
The acquisition and restart of SMP will transformJervois into a vertically integrated producer when its 100%-owned ICOmine in the U.S. starts production, anticipated from mid-2022.
Nico Young Nickel-Cobalt Project, New South Wales,Australia
The Company is continuing discussions which envisagepartial off-take in exchange for funding to complete a BFS. At thattime, Jervois will reassess its level of equity ownership anduncommitted offtake of Nico Young to determine a suitable ownershipstructure and marketing strategy to secure the required projectfinancing to move into construction.
NON-CORE ASSETS
Jervois’s non-core assets are summarized on theCompany’s website.
Jervois has initiated a partnering process for itsUgandan exploration portfolio.
ASX WAIVER INFORMATION
On 6 June 2019, the ASX granted a waiver to Jervois inrespect of extending the period to 8 November 2023 in which it mayissue new Jervois shares to the eCobalt option holders as part of theeCobalt transaction.
As at 30 June 2021, the following Jervois shares wereissued in the quarter on exercise of eCobalt options and the followingeCobalt options remain outstanding:
Jervois shares issued in the quarter on exercise ofeCobalt options: | Nil |
eCobalt options remaining* | |
998,250 1,344,750 1,179,750 123,750 1,980,000 | eCobalt options exercisable until 6 September 2021 atC$0.36 each eCobalt options exercisable until 28 June 2022 atC$0.71 each eCobalt options exercisable until 28 June 2023 atC$0.61 each eCobalt options exercisable until 24 September 2023 atC$0.50 each eCobalt options exercisable until 1 October 2023 atC$0.53 each |
5,502,750 |
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?? The number of options represent the number ofJervois shares that will be issued on exercise. The exercise pricerepresents the price to be paid for the Jervois shares whenissued.
By Order of the Board
Bryce Crocker
Chief Executive Officer
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Mining Limited | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Forward-Looking Statements
This news release may contain certain“Forward-Looking Statements” within the meaning of the UnitedStates Private Securities Litigation Reform Act of 1995 and applicableCanadian securities laws. When used in this news release, the words“anticipate”, “believe”, “estimate”, “expect”,“target, “plan”, “forecast”, “may”, “schedule” andother similar words or expressions identify forward-looking statementsor information. These forward-looking statements or information mayrelate to timing and completion of the Entitlement Offer, timing ofcompletion of the acquisition of Freeport Cobalt, construction work tobe undertaken at ICO, timing of production at ICO, preparation ofstudies on the SMP refinery, the reliability of third partyinformation, and certain other factors or information. Such statementsrepresent the Company’s current views with respect to future eventsand are necessarily based upon a number of assumptions and estimatesthat, while considered reasonable by the Company, are inherentlysubject to significant business, economic, competitive, political andsocial risks, contingencies and uncertainties. Many factors, bothknown and unknown, could cause results, performance or achievements tobe materially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements. The Company 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.
Tenements Australian Tenements
Uganda Exploration Licences
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Idaho Cobalt Operations – 100% Interest owned | ||
Claim Name | County # | IMC # |
SUN 1 | 222991 | 174156 |
SUN 2 | 222992 | 174157 |
SUN 3 Amended | 245690 | 174158 |
SUN 4 | 222994 | 174159 |
SUN 5 | 222995 | 174160 |
SUN 6 | 222996 | 174161 |
SUN 7 | 224162 | 174628 |
SUN 8 | 224163 | 174629 |
SUN 9 | 224164 | 174630 |
SUN 16 Amended | 245691 | 177247 |
SUN 18 Amended | 245692 | 177249 |
Sun 19 | 277457 | 196394 |
SUN FRAC 1 | 228059 | 176755 |
SUN FRAC 2 | 228060 | 176756 |
TOGO 1 | 228049 | 176769 |
TOGO 2 | 228050 | 176770 |
TOGO 3 | 228051 | 176771 |
DEWEY FRAC Amended | 248739 | 177253 |
Powder 1 | 269506 | 190491 |
Powder 2 | 269505 | 190492 |
LDC-1 | 224140 | 174579 |
LDC-2 | 224141 | 174580 |
LDC-3 | 224142 | 174581 |
LDC-5 | 224144 | 174583 |
LDC-6 | 224145 | 174584 |
LDC-7 | 224146 | 174585 |
LDC-8 | 224147 | 174586 |
LDC-9 | 224148 | 174587 |
LDC-10 | 224149 | 174588 |
LDC-11 | 224150 | 174589 |
LDC-12 | 224151 | 174590 |
LDC-13 Amended | 248718 | 174591 |
LDC-14 Amended | 248719 | 174592 |
LDC-16 | 224155 | 174594 |
LDC-18 | 224157 | 174596 |
LDC-20 | 224159 | 174598 |
LDC-22 | 224161 | 174600 |
LDC FRAC 1 Amended | 248720 | 175880 |
LDC FRAC 2 Amended | 248721 | 175881 |
LDC FRAC 3 Amended | 248722 | 175882 |
LDC FRAC 4 Amended | 248723 | 175883 |
LDC FRAC 5 Amended | 248724 | 175884 |
RAM 1 | 228501 | 176757 |
RAM 2 | 228502 | 176758 |
RAM 3 | 228503 | 176759 |
RAM 4 | 228504 | 176760 |
RAM 5 | 228505 | 176761 |
RAM 6 | 228506 | 176762 |
RAM 7 | 228507 | 176763 |
RAM 8 | 228508 | 176764 |
RAM 9 | 228509 | 176765 |
RAM 10 | 228510 | 176766 |
RAM 11 | 228511 | 176767 |
RAM 12 | 228512 | 176768 |
RAM 13 Amended | 245700 | 181276 |
RAM 14 Amended | 245699 | 181277 |
RAM 15 Amended | 245698 | 181278 |
RAM 16 Amended | 245697 | 181279 |
Ram Frac 1 Amended | 245696 | 178081 |
Ram Frac 2 Amended | 245695 | 178082 |
Ram Frac 3 Amended | 245694 | 178083 |
Ram Frac 4 Amended | 245693 | 178084 |
HZ 1 | 224173 | 174639 |
HZ 2 | 224174 | 174640 |
HZ 3 | 224175 | 174641 |
HZ 4 | 224176 | 174642 |
HZ 5 | 224413 | 174643 |
HZ 6 | 224414 | 174644 |
HZ 7 | 224415 | 174645 |
HZ 8 | 224416 | 174646 |
HZ 9 | 224417 | 174647 |
HZ 10 | 224418 | 174648 |
HZ 11 | 224419 | 174649 |
HZ 12 | 224420 | 174650 |
HZ 13 | 224421 | 174651 |
HZ 14 | 224422 | 174652 |
HZ 15 | 231338 | 178085 |
HZ 16 | 231339 | 178086 |
HZ 18 | 231340 | 178087 |
HZ 19 | 224427 | 174657 |
Z 20 | 224428 | 174658 |
HZ 21 | 224193 | 174659 |
HZ 22 | 224194 | 174660 |
HZ 23 | 224195 | 174661 |
HZ 24 | 224196 | 174662 |
HZ 25 | 224197 | 174663 |
HZ 26 | 224198 | 174664 |
HZ 27 | 224199 | 174665 |
HZ 28 | 224200 | 174666 |
HZ 29 | 224201 | 174667 |
HZ 30 | 224202 | 174668 |
HZ 31 | 224203 | 174669 |
HZ 32 | 224204 | 174670 |
HZ FRAC | 228967 | 177254 |
JC 1 | 224165 | 174631 |
JC 2 | 224166 | 174632 |
JC 3 | 224167 | 174633 |
JC 4 | 224168 | 174634 |
JC 5 Amended | 245689 | 174635 |
JC 6 | 224170 | 174636 |
JC FR 7 | 224171 | 174637 |
JC FR 8 | 224172 | 174638 |
JC 9 | 228054 | 176750 |
JC 10 | 228055 | 176751 |
JC 11 | 228056 | 176752 |
JC-12 | 228057 | 176753 |
JC-13 | 228058 | 176754 |
JC 14 | 228971 | 177250 |
JC 15 | 228970 | 177251 |
JC 16 | 228969 | 177252 |
JC 17 | 259006 | 187091 |
JC 18 | 259007 | 187092 |
JC 19 | 259008 | 187093 |
JC 20 | 259009 | 187094 |
JC 21 | 259010 | 187095 |
JC 22 | 259011 | 187096 |
CHELAN NO. 1 Amended | 248345 | 175861 |
GOOSE 2 Amended | 259554 | 175863 |
GOOSE 3 | 227285 | 175864 |
GOOSE 4 Amended | 259553 | 175865 |
GOOSE 6 | 227282 | 175867 |
GOOSE 7 Amended | 259552 | 175868 |
GOOSE 8 Amended | 259551 | 175869 |
GOOSE 10 Amended | 259550 | 175871 |
GOOSE 11 Amended | 259549 | 175872 |
GOOSE 12 Amended | 259548 | 175873 |
GOOSE 13 | 228028 | 176729 |
GOOSE 14 Amended | 259547 | 176730 |
GOOSE 15 | 228030 | 176731 |
GOOSE 16 | 228031 | 176732 |
GOOSE 17 | 228032 | 176733 |
GOOSE 18 Amended | 259546 | 176734 |
GOOSE 19 Amended | 259545 | 176735 |
GOOSE 20 | 228035 | 176736 |
GOOSE 21 | 228036 | 176737 |
GOOSE 22 | 228037 | 176738 |
GOOSE 23 | 228038 | 176739 |
GOOSE 24 | 228039 | 176740 |
GOOSE 25 | 228040 | 176741 |
SOUTH ID 1 Amended | 248725 | 175874 |
SOUTH ID 2 Amended | 248726 | 175875 |
SOUTH ID 3 Amended | 248727 | 175876 |
SOUTH ID 4 Amended | 248717 | 175877 |
SOUTH ID 5 Amended | 248715 | 176743 |
SOUTH ID 6 Amended | 248716 | 176744 |
South ID 7 | 306433 | 218216 |
South ID 8 | 306434 | 218217 |
South ID 9 | 306435 | 218218 |
South ID 10 | 306436 | 218219 |
South ID 11 | 306437 | 218220 |
South ID 12 | 306438 | 218221 |
South ID 13 | 306439 | 218222 |
South ID 14 | 306440 | 218223 |
OMS-1 | 307477 | 218904 |
Chip 1 | 248956 | 184883 |
Chip 2 | 248957 | 184884 |
Chip 3 Amended | 277465 | 196402 |
Chip 4 Amended | 277466 | 196403 |
Chip 5 Amended | 277467 | 196404 |
Chip 6 Amended | 277468 | 196405 |
Chip 7 Amended | 277469 | 196406 |
Chip 8 Amended | 277470 | 196407 |
Chip 9 Amended | 277471 | 196408 |
Chip 10 Amended | 277472 | 196409 |
Chip 11 Amended | 277473 | 196410 |
Chip 12 Amended | 277474 | 196411 |
Chip 13 Amended | 277475 | 196412 |
Chip 14 Amended | 277476 | 196413 |
Chip 15 Amended | 277477 | 196414 |
Chip 16 Amended | 277478 | 196415 |
Chip 17 Amended | 277479 | 196416 |
Chip 18 Amended | 277480 | 196417 |
Sun 20 | 306042 | 218133 |
Sun 21 | 306043 | 218134 |
Sun 22 | 306044 | 218135 |
Sun 23 | 306045 | 218136 |
Sun 24 | 306046 | 218137 |
Sun 25 | 306047 | 218138 |
Sun 26 | 306048 | 218139 |
Sun 27 | 306049 | 218140 |
Sun 28 | 306050 | 218141 |
Sun 29 | 306051 | 218142 |
Sun 30 | 306052 | 218143 |
Sun 31 | 306053 | 218144 |
Sun 32 | 306054 | 218145 |
Sun 33 | 306055 | 218146 |
Sun 34 | 306056 | 218147 |
Sun 35 | 306057 | 218148 |
Sun 36 | 306058 | 218149 |
Chip 21 Fraction | 306059 | 218113 |
Chip 22 Fraction | 306060 | 218114 |
Chip 23 | 306025 | 218115 |
Chip 24 | 306026 | 218116 |
Chip 25 | 306027 | 218117 |
Chip 26 | 306028 | 218118 |
Chip 27 | 306029 | 218119 |
Chip 28 | 306030 | 218120 |
Chip 29 | 306031 | 218121 |
Chip 30 | 306032 | 218122 |
Chip 31 | 306033 | 218123 |
Chip 32 | 306034 | 218124 |
Chip 33 | 306035 | 218125 |
Chip 34 | 306036 | 218126 |
Chip 35 | 306037 | 218127 |
Chip 36 | 306038 | 218128 |
Chip 37 | 306039 | 218129 |
Chip 38 | 306040 | 218130 |
Chip 39 | 306041 | 218131 |
Chip 40 | 307491 | 218895 |
DRC NW 1 | 307492 | 218847 |
DRC NW 2 | 307493 | 218848 |
DRC NW 3 | 307494 | 218849 |
DRC NW 4 | 307495 | 218850 |
DRC NW 5 | 307496 | 218851 |
DRC NW 6 | 307497 | 218852 |
DRC NW 7 | 307498 | 218853 |
DRC NW 8 | 307499 | 218854 |
DRC NW 9 | 307500 | 218855 |
DRC NW 10 | 307501 | 218856 |
DRC NW 11 | 307502 | 218857 |
DRC NW 12 | 307503 | 218858 |
DRC NW 13 | 307504 | 218859 |
DRC NW 14 | 307505 | 218860 |
DRC NW 15 | 307506 | 218861 |
DRC NW 16 | 307507 | 218862 |
DRC NW 17 | 307508 | 218863 |
DRC NW 18 | 307509 | 218864 |
DRC NW 19 | 307510 | 218865 |
DRC NW 20 | 307511 | 218866 |
DRC NW 21 | 307512 | 218867 |
DRC NW 22 | 307513 | 218868 |
DRC NW 23 | 307514 | 218869 |
DRC NW 24 | 307515 | 218870 |
DRC NW 25 | 307516 | 218871 |
DRC NW 26 | 307517 | 218872 |
DRC NW 27 | 307518 | 218873 |
DRC NW 28 | 307519 | 218874 |
DRC NW 29 | 307520 | 218875 |
DRC NW 30 | 307521 | 218876 |
DRC NW 31 | 307522 | 218877 |
DRC NW 32 | 307523 | 218878 |
DRC NW 33 | 307524 | 218879 |
DRC NW 34 | 307525 | 218880 |
DRC NW 35 | 307526 | 218881 |
DRC NW 36 | 307527 | 218882 |
DRC NW 37 | 307528 | 218883 |
DRC NW 38 | 307529 | 218884 |
DRC NW 39 | 307530 | 218885 |
DRC NW 40 | 307531 | 218886 |
DRC NW 41 | 307532 | 218887 |
DRC NW 42 | 307533 | 218888 |
DRC NW 43 | 307534 | 218889 |
DRC NW 44 | 307535 | 218890 |
DRC NW 45 | 307536 | 218891 |
DRC NW 46 | 307537 | 218892 |
DRC NW 47 | 307538 | 218893 |
DRC NW 48 | 307539 | 218894 |
EBatt 1 | 307483 | 218896 |
EBatt 2 | 307484 | 218897 |
EBatt 3 | 307485 | 218898 |
EBatt 4 | 307486 | 218899 |
EBatt 5 | 307487 | 218900 |
EBatt 6 | 307488 | 218901 |
EBatt 7 | 307489 | 218902 |
EBatt 8 | 307490 | 218903 |
OMM-1 | 307478 | 218905 |
OMM-2 | 307479 | 218906 |
OMN-2 | 307481 | 218908 |
OMN-3 | 307482 | 218909 |
BTG-1 | 307471 | 218910 |
BTG-2 | 307472 | 218911 |
BTG-3 | 307473 | 218912 |
BTG-4 | 307474 | 218913 |
BTG-5 | 307475 | 218914 |
BTG-6 | 307476 | 218915 |
NFX 17 | 307230 | 218685 |
NFX 18 | 307231 | 218686 |
NFX 19 | 307232 | 218687 |
NFX 20 | 307233 | 218688 |
NFX 21 | 307234 | 218689 |
NFX 22 | 307235 | 218690 |
NFX 23 | 307236 | 218691 |
NFX 24 | 307237 | 218692 |
NFX 25 | 307238 | 218693 |
NFX 30 | 307243 | 218698 |
NFX 31 | 307244 | 218699 |
NFX 32 | 307245 | 218700 |
NFX 33 | 307246 | 218701 |
NFX 34 | 307247 | 218702 |
NFX 35 | 307248 | 218703 |
NFX 36 | 307249 | 218704 |
NFX 37 | 307250 | 218705 |
NFX 38 | 307251 | 218706 |
NFX 42 | 307255 | 218710 |
NFX 43 | 307256 | 218711 |
NFX 44 | 307257 | 218712 |
NFX 45 | 307258 | 218713 |
NFX 46 | 307259 | 218714 |
NFX 47 | 307260 | 218715 |
NFX 48 | 307261 | 218716 |
NFX 49 | 307262 | 218717 |
NFX 50 | 307263 | 218718 |
NFX 56 | 307269 | 218724 |
NFX 57 | 307270 | 218725 |
NFX 58 | 307271 | 218726 |
NFX 59 | 307272 | 218727 |
NFX 60 Amended | 307558 | 218728 |
NFX 61 | 307274 | 218729 |
NFX 62 | 307275 | 218730 |
NFX 63 | 307276 | 218731 |
NFX 64 | 307277 | 218732 |
OMN-1 revised | 315879 | 228322 |
Black Pine – 100% Interest Owned | ||
Claim Name | Book & Page County # | IMC # |
NOAH #1 | 304761 | 217757 |
NOAH #2 | 304762 | 217758 |
NOAH #3 | 304763 | 217759 |
NOAH #4 | 304764 | 217760 |
NOAH #5 | 304765 | 217761 |
NOAH #6 | 304766 | 217762 |
NOAH #7 | 304767 | 217763 |
NOAH #8 | 304768 | 217764 |
NOAH #9 | 304769 | 217765 |
NOAH #10 | 304770 | 217766 |
NOAH #11 Amended | 305804 | 218081 |
NOAH #12 | 305803 | 218082 |
NOAH #13 FRAC | 305802 | 218083 |
NOAH #14 | 305805 | 218084 |
NOAH #15 | 305806 | 218085 |
NOAH #16 | 305807 | 218086 |
NOAH #17 | 305808 | 218087 |
NOAH #18 | 305809 | 218088 |
NOAH #19 | 305810 | 218089 |
NOAH #20 | 305811 | 218090 |
NOAH #21 | 305812 | 218091 |
NOAH #22 | 305813 | 218092 |
NOAH #23 | 305814 |
Mining explorationentity or oil and gas exploration entity
quarterly cash flow report
Jervois Mining Limited | ||
52 007 626 575 | 30 June 2021 |
Current quarter | Year to date (6 months) | ||
1. | Cash flows from operating activities | - | - |
1.1 | Receipts from customers | ||
1.2 | Payments for | - | - |
| |||
| - | - | |
| - | - | |
| (1,221) | (2,256) | |
| (518) | (1,239) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | - | - |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | 62 | 62 |
1.8 | Other – business development costs | (1,832) | (2,104) |
1.9 | Net cash from / (used in) operating activities | (3,509) | (5,537) |
2. | Cash flows from investing activities | - | - |
2.1 | Payments to acquire or for: | ||
| |||
| - | - | |
| (3,233) | (4,800) | |
| (13) | (53) | |
| - | - | |
| - | - | |
2.2 | Proceeds from the disposal of: | - | - |
| |||
| - | - | |
| 25 | 30 | |
| - | - | |
| - | - | |
2.3 | Cash flows from loans to other entities | - | - |
2.4 | Dividends received (see note 3) | - | - |
2.5 | Other – SMP Refinery Purchase: lease payment | (1,143) | (1,489) |
2.6 | Net cash from / (used in) investing activities | (4,364) | (6,312) |
3. | Cash flows from financing activities | - | - |
3.1 | Proceeds from issues of equity securities (excludingconvertible debt securities) | ||
3.2 | Proceeds from issue of convertible debtsecurities | - | - |
3.3 | Proceeds from exercise of options | - | 2,709 |
3.4 | Transaction costs related to issues of equitysecurities or convertible debt securities | - | - |
3.5 | Proceeds from borrowings | - | - |
3.6 | Repayment of borrowings | - | - |
3.7 | Transaction costs related to loans andborrowings | - | - |
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing activities | - | 2,709 |
4. | Net increase / (decrease) in cash and cash equivalentsfor the period | ||
4.1 | Cash and cash equivalents at beginning of period | 41,039 | 42,331 |
4.2 | Net cash from / (used in) operating activities(item 1.9 above) | (3,509) | (5,537) |
4.3 | Net cash from / (used in) investing activities(item 2.6 above) | (4,364) | (6,312) |
4.4 | Net cash from / (used in) financing activities(item 3.10 above) | - | 2,709 |
4.5 | Effect of movement in exchange rates on cashheld | 100 | 75 |
4.6 | Cash and cash equivalents at end of period | 33,266 | 33,266 |
8. |
| |
8.1 | Net cash from / (used in) operating activities(item 1.9) | (3,509) |
8.2 | (Payments for exploration &evaluation classified as investing activities) (item 2.1(d)) | (13) |
8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (3,522) |
8.4 | Cash and cash equivalents at quarter end(item 4.6) | 33,266 |
8.5 | Unused finance facilities available at quarter end(item 7.5) | - |
8.6 | Total available funding (item 8.4 + item 8.5) | 33,266 |
8.7 | Estimated quarters of funding available (item 8.6divided by item 8.3) | 9.45 |
Note: if the entity has reported positive relevantoutgoings (i.e., a net cash inflow) in item 8.3, answer item 8.7 as“N/A”. Otherwise, a figure for the estimated quarters of fundingavailable must be included in item 8.7. | ||
8.8 | If item 8.7 is less than 2 quarters, please provideanswers to the following questions: | |
8.8.1 Does the entity expect that it willcontinue to have the current level of net operating cash flows for thetime being and, if not, why not? | ||
Answer: | ||
8.8.2 Has the entity taken any steps, ordoes it propose to take any steps, to raise further cash to fund itsoperations and, if so, what are those steps and how likely does itbelieve that they will be successful? | ||
Answer: | ||
8.8.3 Does the entity expect to be able tocontinue its operations and to meet its business objectives and, ifso, on what basis? | ||
Answer: | ||
Note: where item 8.7 is less than 2 quarters, all ofquestions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
1 This statement has been prepared inaccordance with accounting standards and policies which comply withListing Rule 19.11A.
2 This statement gives a true and fair viewof the matters disclosed.
Date: 30 July 2021
Authorised by: Disclosure Committee
(Name of body or officer authorising release – seenote 4)
1. This quarterly cash flow report and theaccompanying activity report provide a basis for informing the marketabout the entity’s activities for the past quarter, how they havebeen financed and the effect this has had on its cash position. Anentity that wishes to disclose additional information over and abovethe minimum required under the Listing Rules is encouraged to doso.
2. If this quarterly cash flow report hasbeen prepared in accordance with Australian Accounting Standards, thedefinitions in, and provisions of, AASB 6:Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cashflow report has been prepared in accordance with other accountingstandards agreed by ASX pursuant to Listing Rule 19.11A, thecorresponding equivalent standards apply to this report.
3. Dividends received may be classifiedeither as cash flows from operating activities or cash flows frominvesting activities, depending on the accounting policy of theentity.
4. If this report has been authorised forrelease to the market by your board of directors, you can insert here:“By the board”. If it has been authorised for release to themarket by a committee of your board of directors, you can insert here:“By the [ name of board committee – e.g., Audit and RiskCommittee ]”. If it has been authorised forrelease to the market by a disclosure committee, you can insert here:“By the Disclosure Committee”.
5. If this report has been authorised forrelease to the market by your board of directors and you wish to holdyourself out as complying with recommendation 4.2 of the ASXCorporate Governance Council’s CorporateGovernance Principles and Recommendations , theboard should have received a declaration from its CEO and CFO that, intheir opinion, the financial records of the entity have been properlymaintained, that this report complies with the appropriate accountingstandards and gives a true and fair view of the cash flows of theentity, and that their opinion has been formed on the basis of a soundsystem of risk management and internal control which is operatingeffectively.
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