(TheNewswire)
Highlights:
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Jervois entered an agreement forUS$15 million in funding from the United States (“U.S.”)Government for drilling at its Idaho Cobalt Operations mine(“ICO”) and to do a bankable feasibility study for construction ofa cobalt refinery in the U.S.
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ICO’s mineral resource and reserveis the largest and highest grade confirmed cobalt orebody in theU.S.
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Cobalt is a critical mineral asdeclared by the U.S. Government due to cobalt’s defense, militaryand energy transition applications
Jervois Global Limited (“ Jervois ” or the“ Company ”) (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) announces itssubsidiary, Jervois Mining USA, has entered into an agreement with theUnited States (“ U.S. ”) Department of Defense(“ DoD ”), allowing Jervois to begin the work funded by thepreviously announced DoD US$15 million funding (the “Agreement Funding” ) to advance U.S. cobalt supply chain security. TheAgreement Funding is under the Manufacturing Capability Expansion andInvestment Prioritization (“ MCIEP ”) office of Industrial Base Policy(“ IBP ”) using the U.S. Defense Production Act (“ DPA ”) authoritiesand utilises funds from the Additional Ukraine SupplementalAppropriations Act.
Jervois’ mineral resource drilling program at its 100% owned Idaho Cobalt Operations mine(“ ICO ”) will be accelerated by theAgreement Funding. The drilling program will define and expand ICO’sRAM deposit existing cobalt resources and, also potentially, delineatethe adjacent Sunrise historic resource to modern geologicalstandards.
The Agreement Funding will also fund a bankablefeasibility study (a “ BFS ”) for a cobalt refinery in the U.S. tobe completed by a Jervois subsidiary delegated by Jervois Mining USA. Preparation of Jervois’ U.S. refinery BFS will be expedited bybenefitting from efficiencies provided by the Company’s decision topivot to the US refinery BFS its efforts and work-in-progress on acobalt refinery expansion BFS at Jervois Finland, as announced on 18April 2023. Jervois Finland is Jervois’ 100% owned cobalt refiningand advanced manufacturing operation in Kokkola, Finland; existingcobalt refinery design and work product including flowsheet will beutilized in preparing the U.S. refinery BFS.
Jervois suspended final construction at ICO in lateMarch 2023 due to continuing low cobalt prices and U.S. inflationaryimpacts on construction costs, to prudently preserve the value ofICO's cobalt ore body. The Company expects cobalt prices to recoverover the medium term, driven by the energy transition (such as thegrowth of electric vehicle adoption etc.) and a growing demand trendfor cobalt with Western ESG credentials, such as cobalt fromICO.
ICO’s mineral resource and reserve is the largest andhighest grade confirmed cobalt orebody
in the U.S. and, when commissioned, ICO will be theU.S.’ only primary cobalt mine. Cobalt is a critical mineral asdeclared by the U.S. Government due to cobalt’s defense, militaryand energy transition applications.
The DoD press release, including a statement from theU.S. Assistant Secretary of Defense for Industrial Base Policy, Dr.Laura Taylor-Kale, is located on the DoD website .
On behalf of Jervois
Bryce Crocker, CEO
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Global | 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 the timing ofdrilling activities at ICO, the timing of the US refinery BFS, amountof funding provided to the Company from the U.S. DOD and certain otherfactors or information. Such statements represent Jervois’ currentviews with respect to future events and are necessarily based upon anumber of assumptions and estimates that, while considered reasonableby Jervois, 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 in circumstances or any other events affectionssuch statements and information other than as required by applicablelaws, 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.
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