- Australian miner Jervois (JRV) may become the second-largest cobalt producer outside of China after purchasing Freeport Cobalt for US$160 million (A$216 million)
- Freeport Cobalt has produced cobalt products since 1968
- To pay for the purchase, Jervois is looking to raise A$313 million through a capital raise, comprising a placement and entitlement offer
- Jervois expects the acquisition to close at the end of August.
- Company shares will recommence trading on Wednesday, July 28 and last traded at 57 cents per share
Jervois (JRV) has agreed to purchase Finland-based Freeport Cobalt for US$160 million (about A$216 million).
The agreement gives Jervois the potential to become the second-largest producer of refined cobalt outside of China.
Additionally, the purchase will also provide the company with an established global market platform to operate.
Freeport Cobalt has produced cobalt products since 1968 and is located in Kokkola.
To pay for the purchase, Jervois is looking to raise $313 million through a capital raise, through a placement and entitlement offer.
One of the world’s largest integrated energy and commodities companies Mercuria has agreed to invest US$40 million (about A$54 million) in the equity raise. Mercuria and Jervois have agreed to work together to advance their commercial footprint and leverage the rising demand for nickel and cobalt products.
The company’s largest shareholder, AustralianSuper, has agreed to invest approximately $50 million and to further sub-underwrite the entitlement offer for approximately $33 million.
Freeport and Lundin Mining through KCHL have also committed to supporting the equity raising and sub-underwrite the entitlement offer up to approximately $66 million.
Jervois is expecting the acquisition to close at the end of August.
Company shares will recommence trading on Wednesday, July 28 and last traded at 57 cents per share.