Jervois Global closes US$44.9 million equity offering

On Friday, July 21, 2023, Jervois Global Ltd. [JRV-TSXV, ASX; JRVMF-OTC] announced to the Australian Stock Exchange completion of the retail component of its fully underwritten one-for-3.34 accelerated non-renounceable entitlement offer, which settled on Wednesday, July 26, 2023.

The final Retail Entitlement Offer tranche was part of Jervois issuing new fully paid ordinary shares as announced to the ASX on Wednesday, 28 June 2023. Together with the institutional placement and institutional component of the entitlement offer, a total of 622,700,619 New Shares at A$0.06 per share were issued, for aggregate gross proceeds of approximately A$37.4 million (US$25 million).

The net proceeds from the Offer will be used to strengthen Jervois’ balance sheet, improve liquidity and working capital flexibility, with cash also being applied to debt reduction.

Jefferies Australia Pty Ltd and Canaccord Genuity (Australia) Limited acted as joint lead managers and underwriters of the Offer. Total investment banking fees will be 5.4% of total Offer proceeds.

Concurrently with the Retail Entitlement Offer, Jervois also announced to the ASX completion of the issuance of US$19.9 million of unlisted convertible notes to Millstreet Credit Fund LP. The Notes entitle the Noteholder to be issued New Shares. Tranche 1 of the offering of Notes was part of Jervois issuing US$25 million Notes to the Noteholder as announced to the ASX on Wednesday, 28 June 2023.

The second tranche of the Note Offering comprising US$5.1 million of Notes will be issued subject to the approval of the company’s ordinary shareholders at a general meeting to be held on 28 August 2023. If Shareholder Approval is not received for the tranche 2 Notes, those Notes will not be issued.

Total establishment fees of 4.0% of the total Note Offering proceeds will be paid to the Noteholder. Jervois insiders have contributed A$1.0 million to the Offer. Other Jervois management contributed A$0.06 million (1,086,542 New Shares).

The Offer and the Note Offering remain subject to the final approval of the TSXV.

Australian Super Pty Limited subscribed for 282,311,676 New Shares (at an aggregate subscription price of approximately A$17.0 million) into Jervois to support the Offer.

Jervois Global has begun its surface drilling campaign at the Sunshine deposit adjacent to Idaho cobalt operations (ICO) in Idaho, United States. Mobilization is under way, with drilling expected to commence at the start of September, 2023, pending final U.S. Forest Service (USFS) approval.