Jervois issues first A$19.9m convertible notes
PERTH (miningweekly.com) – Triple-listed Jervois Global has issued the first tranche of $19.9-million convertible notes as part of a larger $50-million capital raise announced in June this year.
The $50-million capital raise also includes a $25-million fully underwritten 1-for-3.34 accelerated non-renounceable entitlement offer, which will be priced at 6c a share.
Jervois said on Thursday that the second tranche of its $25-million convertible notes would be issued following shareholder approval at a meeting scheduled for August 25.
Net proceeds from the capital raising would strengthen Jervois’ balance sheet, improve liquidity and working capital flexibility, with cash also being applied to debt reduction. Once expected debt payments were complete, Jervois would have a pro forma cash balance of $65-million, the company said on Wednesday.
The capital raising will support Jervois’ refocused strategy to respond to historic low cobalt prices, including the continued implementation and delivery of its turnaround operation in Finland, a focus on strategic partnerships to position the company for expected re-rating on cobalt price recovery, and increased cooperation on critical mineral supply chain security with its host governments.
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