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Idaho Cobalt Operations. Source: JRV CFO James May/LinkedIn
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  • Jervois Global (JRV), formerly Jervois Mining, has successfully closed a retail entitlement offer to raise $178 million
  • It forms part of a $313 million equity raise, including a placement and non-renounceable entitlement offer, to fund the acquisition of Freeport Cobalt
  • The placement and institutional component of the offer were completed at the end of July and raised $136 million
  • Now the equity raise is nearing completion, Jervois is on track to become the second largest producer of refined cobalt outside China
  • Company shares are up 3.45 per cent to trade at 45 cents at 1:56 pm AEST

Jervois Global (JRV), formerly Jervois Mining, has successfully closed a retail entitlement offer.

This retail component formed part of an underwritten one-for-1.56 accelerated non-renounceable entitlement offer announced in late July.

Background

On July 27, JRV announced it would acquire Finland-based Freeport Cobalt in the hope of becoming the second largest producer of refined cobalt outside China.

To pay for the US$160 million (A$216 million at the time) purchase, the company inked a $313 million equity raise comprising an $87 million institutional placement and a $226 million institutional and retail entitlement offer.

Soon afterwards, Jervois completed the placement and institutional component of the offer and raised around $136 million.

Under the placement, 197 million shares were issued at 44 cents each to raise $87 million, while the institutional entitlement offer issued 113 million shares at the same price and raised about $50 million.

Retail offer

The retail entitlement offer closed on Wednesday, August 25, and raised approximately $178 million at 44 cents per share.

Jervois received applications for 116,157,489 new shares from eligible retail
shareholders for $51.1 million in cash. This represented an overall take up rate of about 29 per cent (and a take-up rate of entitlements by eligible retail shareholders of close to 38 per cent).

The company expects the 288 million shares that weren’t taken up will be allotted to sub-underwriters of the retail offer.

In total, about 404 million new shares will be issued and are expected to be allocated on Wednesday, September 1, and are expected to trade on the following day.

Company shares were up 3.45 per cent to trade at 45 cents at 1:56 pm AEST.

JRV by the numbers
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