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Monday, 10/19/2020 11:13:25 AM

Monday, October 19, 2020 11:13:25 AM

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JRV news out

Jervois closes $45-million (Australian) financing

2020-10-19 10:30 ET - News Release

Mr. Bryce Crocker reports


Jervois Mining Ltd. has successfully closed a $45-million (Australian) equity raise, prior to issuance costs.

The Placement comprises the issue of 147,540,985 new ordinary shares at a price of 30.5 Australian cents per share. This represents a 1.2% discount to the 10-day VWAP on 16 October 2020. These shares will be issued as fully paid and rank equally with existing ordinary shares on issue.

Existing Jervois shareholder AustralianSuper cornerstoned the Placement, contributing A$18.5 million. The Placement was significantly oversubscribed, as the Company received strong support and demand. Jervois is pleased to welcome several new institutional investors onto its register.

As part of the Placement, Jervois Directors and Senior Management subscribed for 5,737,705 new ordinary shares, representing A$1.75 million. This complements their participation in the July 2019 equity raise of A$2.75 million, strongly aligning Company insiders with other shareholders.

The balance of the new ordinary shares has been placed with institutional and sophisticated investors within the meaning of the Corporations Act 2001 (Cth). Of the 147,540,985 new ordinary shares, Jervois will issue 96,511,881 shares utilizing its existing capacity under Listing Rule 7.1 and issue 32,170,626 utilizing the Company's existing capacity under Listing Rule 7.1A. This portion of the Placement will settle on 27 October 2020.

Jervois will issue a further 18,858,478 shares upon shareholder approval at the Company's AGM scheduled for 30 November 2020, including for the participation of Directors and senior management of the Company in the Placement.

Jervois will use proceeds from the placement for Idaho cobalt operations long lead item orders, detailed engineering and ongoing site costs; and activities relating to the recently announced acquisition of the Sao Miguel Paulista nickel-cobalt refinery in Sao Paulo, Brazil, including the purchase deposit, lease payments from March 2021 and restart feasibility study costs.

Shaw & Partners acted as sole lead manager and bookrunner, with support from BW Equities.

The Placement significantly increases the flexibility of Jervois to pursue the optimal debt, off-take and partnering strategies for its expanded asset base encompassing ICO, SMP and Nico Young. Commercial discussions for nickel and cobalt intermediate suppliers into SMP are commencing, and Jervois plans to commence a restart feasibility study for SMP later in Q4 2020.

We seek Safe Harbor.

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