(TheNewswire)
Highlights
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- Jervois’ subsidiary has settledits US$100 million bond offering (the “Bond Offering”) with netproceeds placed into Jervois Mining USA Limited’s escrow account inexchange for the bonds being issued in accordance with theirterms
- Proceeds from the Bond Offeringwill be used by Jervois to fund construction of its 100%-owned IdahoCobalt Operation (“ICO”) in the United States (“U.S.”) andenter production
- The Bond Offering is repayable inmid-2026 and preserves commercial flexibility through ICO constructionby not obliging Jervois to irrevocably commit cobalt supplyearly
- Jervois purchases a 100-personaccommodation camp for ICO from a local vendor in Boise, Idaho,U.S.
- The camp will be located at site tosignificantly reduce road traffic from previously planned levels andimprove logistics, safety and productivity
- Initial commissioning of the campis anticipated in Q4 2021 to support ICO construction ahead ofexpected mine commissioning in mid-2022
TheNewswire - 2 1 July 2021 - Jervois Mining Limited (“ Jervois ” or the“ Company ”) (ASX:JRV) (TSXV:JRV) (OTC:JRVMF) is pleased to confirmthe Bond Offering announced on 5 July 2021 hasnow settled with the net proceeds of the Bond Offering placed into aUS dollar denominated escrow account (the “ Escrow Account ”) ofJervois Mining USA Limited (the “ Issuer ”) inexchange for the bonds being issued in accordance with their terms. The bonds are debt instruments only, with no attached equitywarrants or equity conversion features. Clarksons Platou Securitiesacted as Manager for the bond and Jervois’ financial advisor inrelation to the bond was Magma Capital Advisory.
Jervois will use the net proceeds from the BondOffering for capital expenditures, operating costs and other costsassociated with the construction and commissioning of its 100%-ownedIdaho Cobalt Operations (“ ICO ”) in the United States (“ U.S.” ). Firstproduction from ICO continues to be expected from mid-2022.
The first of two (2) drawdowns of 50% of the BondsOffering proceeds from the escrow account is anticipated in Q4 2021,following satisfaction of the conditions precedent to withdrawal, asoutlined in the company announcement on 5 July 2021, which include inter alia Jervois raising additional equity of at least US$50 million,and spending US$35 million toward the ICO project. The seconddrawdown, expected during 2022, is also conditional on Jervois owningat least 51% of the SMP refinery or Jervois executing off-takecontracts for ICO cobalt concentrate with third parties for aspecified volume and period.
Completion of the Ausenco led bankable feasibilitystudy (“ BFS ”) for a restart of the São Miguel Paulista(“ SMP ”) refinery in Brazil, is expected in late Q3 2021, withclosing of the agreed acquisition by Jervois of 100% of the facilityscheduled before the end of this calendar year. Terms and conditionsof the SMP refinery purchase are outlined in a 29 September 2020 pressrelease, “São Miguel Paulista nickel and cobalt refineryacquisition”.
ICO Accommodation Camp
Jervois has also committed to purchase for ICO a100-person camp and associated service facilities (sleeping quarters,kitchen and dining facilities). Followingfinal permits related to full operation of the camp, it will supportconstruction and commissioning activities at ICO and then transitioninto providing year-round accommodation for operations.
Establishing the camp will reduce the travelrequirements for the ongoing construction and operations teams, savingtime and reducing fatigue risk for vehicle accidents.
Purchase of the camp supports Jervois’ schedule forexpected concentrate production from ICO in mid-2022, making it theonly cobalt mine in the U.S. for a commodity identified by thegovernment as a strategic mineral of critical importance. Cobalt ison a list of critical minerals developed by the Department of theInterior in coordination with other U.S. executive branch agenciespursuant to Executive Order 13817, “A Federal Strategy to Ensure Secure and ReliableSupplies of Critical Minerals” (82 FR 60835) with the list released in May 2018 (83 FR 23295).
Full text of the terms and conditions of the Bonds (the“ Bond Terms ”) have been filed on, and are available on, Jervois’corporate profile on SEDAR at www.sedar.com . Jervois hasapplied to list the Bonds on the Nordic Alternative Bond Market(“ ABM ”) pursuant to the Bond Terms.
On behalf of Jervois Mining Limited
Bryce Crocker, CEO
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
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 timing ofcommissioning and production at ICO, timing and commissioning of theCamp, timing of drawdown of the Bond funds and certain other factorsor information. Such statements represent Jervois’ current viewswith respect to future events and are necessarily based upon a numberof assumptions and estimates that, while considered reasonable byJervois, are inherently subject to significant business, economic,competitive, political and social risks, contingencies anduncertainties. Many factors, both known and unknown, could causeresults, performance or achievements to be materially different fromthe results, performance or achievements that are or may be expressedor implied by such forward-looking statements. Jervois does notintend, and does not assume any obligation, to update theseforward-looking statements or information to reflect changes inassumptions or changes incircumstances or any other events affections such statements andinformation other than as required by applicable laws, rules andregulations.
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.
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