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Jervois Quarterly Activities Report to 30 June 2021





 

Jervois Mining Limited

ACN: 007 626 575

ASX/TSXV: JRV

OTCQB: JRVMF       

 

Corporate Information:

802.7M Ordinary Shares

91.3M Options

0.4M Performance Rights

 

Non-Executive Chairman

Peter Johnston

 

CEO and Executive Director

Bryce Crocker

 

Non-Executive Directors

Brian Kennedy
Michael Callahan

Company Secretary

Alwyn Davey

 

Contact Details

Suite 508,

737 Burwood Road

Hawthorn East

Victoria 3122

Australia

 

P: +61 (3) 9583 0498

E: admin@jervoisglobal.com

W: www.jervoisglobal.com

 

Highlights

  • - Jervois to raise A$313.0 million via a fully underwritten equity offer to fund acquisition of Freeport Cobalt and Idaho Cobalt Operations (“ICO”) construction

    - Successful completion of initial Placement and Institutional Entitlement Offer tranches of A$136.0 million.  A$177.0 million Retail Entitlement Offer ongoing; settlement at end August

    - Jervois secures US$100.0 million bond offering to fund ICO

    - David Issroff announced as proposed Non-Executive Director

    - Matthew Lengerich appointed EGM Mining

    - Jervois’ Board approves full construction and development of ICO following closing of its bond offering

    - Jervois expects to commence commercial concentrate production at ICO from mid-2022

    - Bond issue preserves commercial flexibility through ICO construction by not obliging Jervois to irrevocably commit cobalt supply early

    - Jervois continues to advance funding support discussions with the United States government

    - Ausenco appointed as Bankable Feasibility Study (“BFS”) lead contractor for São Miguel Paulista (“SMP”) nickel and cobalt refinery in Brazil

    - Metso Outotec engaged to lead testwork for SMP BFS

    - Jervois received approval for Idaho Tax Reimbursement Incentive for ICO

    - Upper Salmon Basin restoration projects initiated with Idaho Conservation League

    - Jervois participated at renewable energy and battery metals conferences

    - Jervois ends June 2021 quarter with A$33.3 million

July 30, 2021 - TheNewswire - Australia (ASX:JRV) (TSXV:JRV) (OTC:JRVMF)

CORPORATE UPDATE

 

Liquidity

Jervois  ended the June 2021 quarter (“Q2”) with A$33.3 million in cash.  The loan from the United States (“U.S.”) government of A$0.1 million relating to COVID-19 stimulus payroll protection was forgiven during the quarter.

Expenditure on exploration and development for the quarter was immaterial as activities at Idaho Cobalt Operations (“ICO”) are now classified as Assets Under Construction; expenditure of A$3.2 million was incurred in the quarter.

In Brazil, lease payments for the São Miguel Paulista (“SMP”) Refinery were R$4.5 million for Q2 (being monthly payments of R$1.5 million) and will continue to occur up to Closing.  Brazilian development expenditure associated with the Ausenco led Bankable Feasibility Study (“BFS”), excluding the lease payment, totalled A$1.1 million during the quarter.

After 30 June 2021, and prior to settlement of the bonds on 20 July 2021, A$24.1 million was transferred to the Escrow Account and Debt Service Account held by Jervois Mining USA Limited in accordance with the bond terms.

Acquisition of Freeport Cobalt and Equity Funding

On 27 July 2021, Jervois announced it has agreed to acquire 100% of Freeport Cobalt by purchasing all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings Limited (“KCHL”) (the “Acquisition”).

Freeport Cobalt is the Kokkola, Finland-based cobalt refining and specialty products business

retained by Freeport-McMoRan (“Freeport”) and certain co-owners following the sale of certain refining and battery materials activities to Umicore in 2019.  The Freeport Cobalt business consists of:

  • - a capacity sharing agreement with Umicore for the 15,000 mtpa cobalt refinery in Kokkola, Finland (which is operated by Umicore) under which Freeport Cobalt has contractual rights to toll refine 6,250 mtpa cobalt at cost until 2093;

    - long-term contracts with leading global suppliers of cobalt hydroxide, consistent with commitment to best practice responsible sourcing framework; and

    - a downstream cobalt products manufacturing facility with an established marketing platform and long-term global customer base servicing clients primarily across Europe, the United States and Japan.

 

The Acquisition is expected to transform Jervois into a global, vertically integrated cobalt and nickel company of scale, led by a highly experienced management team.  Post- acquisition, Jervois will be diversified across multiple products and value chain segments

with significant relevance to leading cobalt producers and end-users.

Jervois’ acquisition of Freeport Cobalt also provides the Company with an established global market platform from which to operate.  The industrial logic and strategic rationale for the Acquisition is compelling, with value for Jervois shareholders expected to be created through technical and commercial synergies with ICO and SMP operations.

The purchase price for Freeport Cobalt is as follows:

- base consideration of US$160 million (including US$75 million of net working capital), subject to customary adjustments, to be paid in cash at closing of the Acquisition; and

- an additional cash payment of the working capital in Freeport Cobalt above US$75 million, at the closing of the Acquisition; and

- contingent consideration of up to US$40 million, payable in cash up to US$10 million per year based on Freeport Cobalt’s financial performance from 2022 through to 2026, and through a “catch up” amount based on Freeport Cobalt’s aggregate financial performance during that period.

The Acquisition is expected to close at the end of August 2021.

To fund the Acquisition and ICO development, Jervois has entered an underwriting agreement providing a fully-underwritten A$313 million equity raising by issuance of new Jervois ordinary shares consisting of a ~A$87m institutional placement (the "Placement") and a ~A$226 million 1 for 1.56 accelerated pro-rata non-renounceable entitlement offer (the “Entitlement Offer”).

 

Approximately A$136 million was raised across the Placement and Institutional Entitlement Offer at an offer price of A$0.44 per share.  The Retail Entitlement Offer is fully underwritten and will raise an additional A$177 million.  Together, the combined proceeds of the equity raising are expected to total A$313 million.

ICO Debt Financing

In July, Jervois announced it had priced and closed the books on its subsidiary’s offering (the “Bond Offering”) of senior secured bonds in the aggregate principal amount of US$100 million, guaranteed by Jervois (the “Bonds”).  Proceeds from the bond issue will be used to fund construction of ICO in the U.S.

Clarksons Platou Securities AS (“Clarksons”) acted as managers for the Nordic-style Bond Offering, launched as a private placement seeking proceeds of US$80-100 million.  The Bonds are U.S. dollar denominated with a five-year term, unless repurchased or redeemed, and bear interest at 12.5% per annum, payable semi-annually in arrears, and were issued at a discount to par of 2%.  The Bonds are debt instruments only, with no attached equity warrants or equity conversion features.

The Bonds will be senior debt of Jervois Mining USA Limited (the “Issuer”), an indirect wholly-owned U.S. subsidiary of Jervois and owner of ICO, and will be guaranteed by Jervois.  The Bonds will be secured on a first priority basis by

  1. (i) a share pledge over all the shares of the Issuer,  

  2. (ii) a pledge over all loans by and between any of the Issuer, Jervois and/or Jervois’ direct wholly-owned U.S. subsidiary which owns all the shares of the Issuer, and  

  3. (iii) security over all material assets (tangible and intangible) of the Issuer, such as the Escrow Account, among other things.  

Net proceeds from the Bond Offering will, upon disbursement to the Issuer from the Escrow Account, be used for the payment of capital expenditures, operating costs and other costs associated with the construction of ICO and bringing it into production.  First production from ICO continues to be expected from mid-2022.

The issue date of the Bond Offering was 20 July 2021.

Upon satisfaction of certain conditions precedent customary for these types of transactions, the net proceeds of the Bond Offering will be placed into a U.S. dollar denominated escrow account of the Issuer (the “Escrow Account”).  These conditions precedent include, without limitation, funding of the Escrow Account by the Issuer such that upon deposit in the Escrow Account of the net proceeds of the Bond Offering, the aggregate sum held on deposit therein (the “Bond Funds") will equal 101% of the aggregate principal amount of the Bonds.

The first of two (2) drawdowns of 50% of the Bonds Funds from the Escrow Account is anticipated in Q4 2021, following satisfaction of the conditions precedent to Withdrawal from Escrow Account.

Jervois is not required to enter into any external off-take agreements for ICO concentrates, except in certain limited circumstances at a later date, under the Bond Terms.  The Company will continue with plans to process the concentrates at the SMP refinery, subject to Jervois completing its SMP acquisition and successfully restarting the refinery in stages during 2022 and 2023.  Jervois’ commercial team plans to sell refined cobalt products from SMP to key customers across the U.S., and potentially Europe, Japan and South Korea.  This sales strategy is expected to maximise value for shareholders versus committing to an early sale of significant volumes of ICO cobalt concentrates in external off-take agreements.  The Company continues discussions with concentrate customers and for commercial reasons may elect to place limited volume of concentrate externally.  The cobalt circuit at SMP is expected to be restarted in 2022 on cobalt hydroxide feedstock, the same material as was previously purchased and refined by the facility.

Customer interest in ICO cobalt in a refined form from SMP is high, reflecting its uniqueness as the only cobalt mined in the U.S. at a time of an increasing focus on ESG standards and security of supply chain risk for critical minerals from geopolitical influences.

Jervois has had positive conversations with the U.S. Government prior to this comprehensive review about the importance of a U.S. domestic source of cobalt and ICO’s financing requirements.  Jervois will continue to advance these discussions on appropriate forms of funding support for ICO and/or Jervois as the policy prescriptions stemming from the review are reflected in the priorities of U.S. Government funding agencies.  Jervois may pursue financing options for ICO and/or other parts of its business with the U.S. Government that can either be implemented in addition to the Bonds, be made available prior to Bond drawdown, or to refinance all or part of the Bonds, in each case in accordance with the Bond Terms.

During Q2 2021, Jervois participated at the U.S. Department of Commerce’s invitation in a roundtable discussion on Advanced Battery Industry Development, hosted by the U.S. Deputy Secretary of Commerce Donald Graves.  Jervois was pleased to provide its perspective on the importance to the U.S. auto industry of a competitive and secure domestic battery supply chain.  The roundtable took place as part of SelectUSA, the keystone investment attraction summit run the U.S. Government, in which CEO’s and senior political leadership worked to advance key projects in the U.S. sponsored by international partners such as Jervois.  The discussion was aligned with the Biden Administrations release of its findings of a 100-day review of vulnerabilities in U.S. critical minerals supply chains, including cobalt.

Board and Management Appointments

On 27 July 2021, Jervois announced it will appoint David Issroff as a Non-Executive Director effective 3 September 2021 following the completion of the acquisition of Freeport Cobalt.

Mr Issroff was a founding Partner with Glencore International AG (“Glencore”), having joined Glencore South Africa in 1989.  In 1992, he transferred to Glencore’s head office in Switzerland with responsibility for the marketing of ferroalloys (including nickel and cobalt).  In 1997, he was appointed Head of the Ferroalloys Division at Glencore International AG, where he was responsible for the global Ferroalloys (including ferrochrome, manganese alloys, ferrosilicon and vanadium), Nickel and Cobalt Divisions of one of the world’s largest suppliers of a wide range of commodities to industrial consumers.  Mr Issroff was also responsible for asset oversight within the division he operated and has extensive experience in optimizing operating assets with a trading element.

In his capacity with Glencore, Mr Issroff served as a Non-Executive Director of investment companies across South Africa, Switzerland and the United Kingdom.  In May 2000, Mr Issroff joined the Board of Xstrata AG, and was subsequently appointed to the Board of Xstrata plc in February 2002 at the time of the London Initial Public Offering (“IPO”).  

Mr Issroff left Glencore and the Xstrata plc Board in 2006 for personal reasons to relocate to the United States, where he remains based today.

Jervois announced on 12 July 2021 the announced that experienced mining executive Matthew Lengerich will be joining as Executive General Manager (“EGM”) – Mining.

Mr Lengerich joins Jervois from global miner Rio Tinto, where he has spent more than 20 years in a range of roles, with his last position as General Manager – Digital Transformation, based in Salt Lake City, Utah.  Over the past four years, Mr Lengerich has been a key leader of Rio Tinto’s efforts to advance its capacity in artificial intelligence, data analytics and mine productivity across its global operating sites.  

Prior to these specialised mining technology roles, as General Manager of Rio Tinto Iron Ore’s integrated operations centre in Perth, Australia, Mr Lengerich had responsibility for 450 staff in central control, executing dynamic scheduling and maintaining the production systems associated with the delivery of 320Mtpa of iron ore from Western Australia.  This product was sourced from 15 mines, and transported through 1,700km of rail network and four independent ports, by the remote operating team.

Earlier, Mr Lengerich was General Manager of the Bingham Canyon Mine near Salt Lake City, a major Rio Tinto mine moving 260Mtpa of material to produce 300,000tpa copper.  Mr Lengerich led the site team of 1,100 employees.  Bingham Canyon remains a world-class operation with industry leading geotechnical engineering, safety and asset performance, and life of mine planning.  Prior to the General Manager role, Mr Lengerich was Bingham Canyon’s Mine Manager for two years.

Mr Lengerich will be responsible for all of Jervois’ mining activities globally and will remain based in the United States.  In addition to EGM Mining, he will also fulfil the role of Acting GM –  ICO, until the mine is constructed and commissioned.

Insider Compensation Reporting

During the quarter A$0.06 million was paid to Non-Executive Directors.  A$0.12 million was paid to the CEO (Executive Director) during the quarter.

Investor Relations

During the quarter, Jervois participated at the Jefferies Renewable Energy Conference: From the Mine to the Market, with CEO Bryce Crocker and CFO James May participating in a panel discussing Cathode Materials and Battery Technology, which was held virtually on 25-27 May. They also participated in 1-1 investor meetings.

In June, Mr Crocker participated in the opening panel at the TD Securities Battery Metals Virtual Roundtable on 22 June 2021, and Mr Crocker and Mr May hosted 1-1 investor meetings during the event.

2021 Annual General Meeting

 

The 2021 Annual General Meeting (“AGM”) of Jervois shareholders was held on 29 July 2021 at 10.00am Australian Eastern Standard Time (“AEST”).  All of the resolutions were passed.

 

OPERATIONAL UPDATES

 

Idaho Cobalt Operations (“ICO”), United States

Jervois’ Board approved final construction of ICO in early July following its senior secured Bond Offering to raise US$100 million (as earlier described).  Upon satisfaction of conditions precedent, which is expected in Q4 2021, they will be used for the payment of capital expenditures, operating costs and other costs associated with the construction of ICO and bringing it into production. First production from ICO continues to be expected from mid-2022.

The properties upon which the mine and mill are situated in the U.S. National Forest lands managed by United States Forest Service (the “USFS”).  Jervois controls 100 percent of the unpatented mining claims over this land, consisting of 313 unpatented lode mining claims.  All activities at ICO adhere to the USFS and Environmental Protection Agency requirements. The site is environmentally permitted with an approved Plan of Operations.

Prior to initiating final construction, Jervois commissioned DRA Global and its sub-consultants, M3 Engineering (“M3”), to prepare an updated Australian JORC Code 2012 Edition Bankable Feasibility Study (“BFS”) and Canadian National Instrument 43-101 Feasibility Study on ICO, the results of which were announced on 29 September 2020.

The detailed design package of work has been progressing well with M3 Engineering.  Equipment orders have been placed on long lead items including the primary crusher and feeder, SAG mill, variable speed drives, flotation cells and blowers.  In addition to long lead items, other equipment such as electrical reticulation and MCC housing, cyclones, concentrate foundations, belt magnets and scales have also been ordered.  Enquiries for thickeners and disc filters are currently in the market.  Commitments are on schedule with no significant price difference between pricing from the BFS and actual market pricing received to date.  All orders are in line with the execution schedule which shows all equipment will be on site by November 2021 for construction execution.

 

The site early works package of work has progressed well and has started with mobilisation of local contractors to assist in the final assembly of the water treatment plant on site.  The M3 construction manager is now on site and supervises all site activity which will progressively increase as the schedule dictates in coming weeks and months.  The early works focus is to finalise site establishment during summer so construction of the process plant and the mining of the portal and development can take place in the North American winter.  Activities include the commissioning of the water treatment plant and pump back system, laying of concrete foundations, erection of the mill and flotation buildings, the laying of a HDPE liner for the dry stack tailings facility and the construction of an accommodation camp.  All these activities which will be executed through summer and completed by end Q3 2021.

Jervois has developed detailed plans to operate ICO in an environmentally responsible manner.

Demonstration by Jervois of its ability to construct and operate safely for the environment, together with necessary drilling success once underground access has been opened (to both convert existing and future mineral resources into mine reserves) are expected to positively support discussions with the USFS and other U.S. regulators regarding a future expansion utilizing the currently disturbed site footprint.

Jervois has awarded Metso Outotec the design, fabrication and delivery contract for a 4.7m diameter and 2.5m-long 750kW SAG (semi-autonomous grinding) mill.  The mill will comfortably accommodate the nameplate 1,200stpd processing capacity cap applied in the ICO BFS, which is based on the Company’s currently approved Plan of Operations.  Delivery of the Metso Outotec SAG mill to site in Idaho is planned and on schedule for Q4 2021.

Site early works are well underway, with full construction to commence on the ground in September 2021.  ICO will create approximately 200 local construction jobs and 180 operational positions once the site transitions into commercial operation.

Site early works include:

  • - Limited remaining earthworks and concrete design and execution;

    - High density polyethylene lining installation on the waste storage facility base;

    - Commissioning of the wastewater treatment plant;

    - Constructing and commissioning of a pump back system;

    - Constructing an accommodation camp (a 100 person camp has been purchased from a local vendor in Boise, Idaho);

    - Bolting and meshing of the portal and extension earthworks of the portal bench; and

    - Erecting buildings which will allow construction to continue over winter.

All these activities have been designed and are in various stages of execution on the site.

The mine site is equipped with all required infrastructure including access roads from both Salmon and Challis, full grid power (at less than U.S. 5 cents per kwh; Idaho Power has offered ICO 100% renewable power from 2023, the first full year of mine and mill operation), a bore field for water supply, communications and all site earthworks and terracing, as illustrated in the following site overhead photograph.

Final construction of ICO will include developing an underground mine over a period of 10 months starting in September 2021, which is scheduled to deliver first ore to an operational mill in July 2022.  Development of the mine is being executed by Small Mine Development (“SMD”), based in Battle Mountain, Nevada.  SMD also participated in the mine design and costing for the updated BFS.

Idaho State Tax Reimbursement Incentive

Jervois received approval for the Idaho Tax Reimbursement Incentive (“TRI”) for ICO.

The Idaho TRI aims to encourage businesses to invest in the state.  It is a policy tool selectively applied by the State of Idaho to attract and grow new businesses of scale and significance to the economy, such as Jervois.  Program eligibility is determined based on capital investment thresholds, the level and quality of job creation together with positive economic impacts, both locally and more broadly across the state of Idaho.

To receive the TRI, Jervois will create 164 new jobs in Idaho at an average wage of above the Lemhi County average.  The award of the TRI to Jervois recognizes the approximately US$100 million of investment thus far into the mine site over more than a decade by its local subsidiary, Jervois Mining USA.

For Jervois, Idaho boasts a skilled workforce, strong infrastructure and competitive low carbon energy costs.  

Positive engagement with host communities and local stakeholders is critical for Jervois, wherever it operates.  This arrangement was originally recommended by Lemhi County, in which ICO is located, and was recently unanimously approved by the Idaho Economic Advisory Council.  Jervois is pleased with the partnership between Lemhi County and the State of Idaho, and believes it reflects positively on the Company’s standing in Idaho and its relationship with residents and governmental authorities, both across the state and specifically in Lemhi County.

Jervois and Idaho Conservation League initiate Upper Salmon Basin Restoration Projects

In June 2021, the Company and the Idaho Conservation League (“ICL”) confirmed the selection of three initial restoration projects as part of the Upper Salmon Conservation Action Program’s (“USCAP”) inaugural round.  Following the request for proposals in the spring, the USCAP funding committee selected three proposals totalling US$150,000 from a competitive pool of applicants.

The USCAP was created in partnership with ICL and Jervois in March 2021 to support protection and restoration of fish and wildlife habitats including water quality, and biodiversity within the Upper Salmon River Basin.  Jervois will contribute US$150,000 annually to USCAP throughout the operational life of ICO in Lemhi County, Idaho.

The Lemhi Soil and Water Conservation District received US$85,000 to move a problematic diversion on the Lemhi River to advance an extensive fish habitat restoration project.  This area has been identified as critical habitat for juvenile Chinook salmon and steelhead.

The USCAP selected White Clouds Preserve for US$35,000 in funding to conduct riparian restoration work.  The non-profit manages a 432-acre former ranch along the East Fork of the Salmon River.  Endangered Species Act-listed Chinook salmon, steelhead and bull trout spawn and rear their young in the East Fork.  The grant will be implemented in collaboration with the Shoeshone-Bannock tribes and local native plant experts, to enable the White Clouds Preserve to monitor and restore critical salmon and steelhead populations along the East Fork, near its confluence with the Main Salmon River.

The Western Rivers Conservancy received US$30,000 to assist with acquiring a key parcel of land along Panther Creek, a major tributary of the Salmon River.  This action is an important step in the recovery of spawning and rearing habitat for endangered fish.  The next call for proposals for the 2022 USCAP funding cycle will be announced in Q4 2021.

São Miguel Paulista (“SMP”) nickel and cobalt refinery, Brazil

In April 2021, the Company announced it had appointed Ausenco as BFS lead contractor for São Miguel Paulista (“SMP”) nickel and cobalt refinery in Brazil.  Ausenco subsequently engaged Metso Outotec to lead testwork and piloting to support engineering and equipment selection.  The introduction of Metso Outotec as subcontractor for the processing component of the BFS creates an exceptionally strong and capable team.  Metso Outotec was the original designer and engineering lead during construction of the SMP refinery.

The SMP BFS will be delivered in stages, with Metso Outotec playing a key role in both phases.

Stage 1 is a measured restart treating hydroxy-carbonate, mixed hydroxide and cobalt hydroxide product previously processed commercially at the refinery to produce over 10,000mtpa and 2,000mtpa of nickel and cobalt refined products respectively.  Prior to being placed on care and maintenance, SMP’s annual refined production capacity for these products was 25,000mtpa nickel and 2,000mtpa cobalt.  BFS for Stage 1 of the restart will be completed by the end of Q3 2021.

Promon Engenharia (“Promon”) prepared detailed plant and refurbishment cost estimates and schedules to support execution of this first phase of the SMP refinery restart.  The outcomes from the Promon integrity audit were used as a guide to the refinery plant and equipment refurbishment.  No major refinery process modifications are anticipated for stage 1.

Stage 2a allows for the integration of a Pressure Oxidation (“POX”) circuit to process both ICO cobalt concentrates, and Stage 2b will add additional third-party supply in the form of sulphide concentrates, with 5,000mtpa of contained nickel.  The POX autoclave circuit will independently leach sulphide concentrates that will be discharged into the existing, operating refinery.  Stage 2a and 2b of the BFS are forecast to be completed at the end of 2021.

Metso Outotec’s role as subcontractor will support Ausenco as lead engineer and ensure Outotec’s historical involvement in SMP’s original design criteria, and more recent organizational POX project experience through to battery grade metals, will be leveraged to fast track the refinery restart and manage risk.  Whilst the headline capacity of SMP remains significantly above Jervois’s Stage 2 restart scale, a measured approach is intended to balance restart risk and upfront capital.

Jervois announced its acquisition of the SMP refinery last year as part of its strategy to become a vertically integrated producer of nickel and cobalt.  The transaction provides Jervois with site access during 2021 to complete the BFS, with closing subject to the satisfaction of usual conditions, expected to be completed by December 2021.

The acquisition and restart of SMP will transform Jervois into a vertically integrated producer when its 100%-owned ICO mine in the U.S. starts production, anticipated from mid-2022.

Nico Young Nickel-Cobalt Project, New South Wales, Australia

 

The Company is continuing discussions which envisage partial off-take in exchange for funding to complete a BFS.  At that time, Jervois will reassess its level of equity ownership and uncommitted offtake of Nico Young to determine a suitable ownership structure and marketing strategy to secure the required project financing to move into construction.

 

NON-CORE ASSETS

 

Jervois’s non-core assets are summarized on the Company’s website.

 

Jervois has initiated a partnering process for its Ugandan exploration portfolio.  

   

ASX WAIVER INFORMATION

 

On 6 June 2019, the ASX granted a waiver to Jervois in respect of extending the period to 8 November 2023 in which it may issue new Jervois shares to the eCobalt option holders as part of the eCobalt transaction.  

 

As at 30 June 2021, the following Jervois shares were issued in the quarter on exercise of eCobalt options and the following eCobalt options remain outstanding:

Jervois shares issued in the quarter on exercise of eCobalt options:

Nil

 

eCobalt options remaining*

        998,250

        1,344,750

        1,179,750

        123,750

        1,980,000

eCobalt options exercisable until 6 September 2021 at C$0.36 each

eCobalt options exercisable until 28 June 2022 at C$0.71 each

eCobalt options exercisable until 28 June 2023 at C$0.61 each

eCobalt options exercisable until 24 September 2023 at C$0.50 each

eCobalt options exercisable until 1 October 2023 at C$0.53 each

5,502,750

 
 
  • The number of options represent the number of Jervois shares that will be issued on exercise.  The exercise price represents the price to be paid for the Jervois shares when issued. 

  

By Order of the Board

Bryce Crocker

Chief Executive Officer

  

For further information, please contact:

  

Investors and analysts:

James May

Chief Financial Officer

Jervois Mining Limited

jmay@jervoismining.com.au

 

Media:

Nathan Ryan

NWR Communications

nathan.ryan@nwrcommunications.com.au

Mob: +61 420 582 887

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

  

Forward-Looking Statements

 

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to timing and completion of the Entitlement Offer, timing of completion of the acquisition of Freeport Cobalt, construction work to be undertaken at ICO, timing of production at ICO, preparation of studies on the SMP refinery, the reliability of third party information, and certain other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

  

Tenements

 

 Australian Tenements

 

Description

 

Tenement number

Interest owned %

Ardnaree (NSW)

 

EL 5527

100.0

Thuddungra (NSW)

 

EL 5571

100.0

Nico Young (NSW)

 

EL 8698

100.0

Area 1 (NSW)

 

EL 8474

100.0

West Arunta (WA)

 

E80 4820

20.0

West Arunta (WA)

 

E80 4986

20.0

West Arunta (WA)

 

E80 4987

20.0

Old Khartoum (QLD)

 

EPM 14797

100.0

Khartoum (QLD)

 

EPM 19112

100.0

Three Mile Creek (QLD)

 

EPM 19113

100.0

Carbonate Creek (QLD)

 

EPM 19114

100.0

Mt Fairyland (QLD)

 

EPM 19203

100.0

 

Uganda Exploration Licences

 

Description

 

Exploration Licence number

Interest owned %

Bujagali

 

EL1666

100.0

Bujagali

 

EL1682

100.0

Bujagali

 

EL1683

100.0

Bujagali

 

EL1665

100.0

Bujagali

 

EL1827

100.0

Kilembe Area

 

EL1673

100.0

Kilembe Area

 

EL1674

100.0

Kilembe Area

 

EL1735

100.0

Kilembe Area

 

EL1736

100.0

Kilembe Area

 

EL1737

100.0

Kilembe Area               

 

EL0012       

100.0

 
 

Idaho Cobalt Operations – 100% Interest owned

Claim Name

County #

IMC #

SUN 1

222991

174156

SUN 2

222992

174157

SUN 3 Amended

245690

174158

SUN 4

222994

174159

SUN 5

222995

174160

SUN 6

222996

174161

SUN 7

224162

174628

SUN 8

224163

174629

SUN 9

224164

174630

SUN 16 Amended

245691

177247

SUN 18 Amended

245692

177249

Sun 19

277457

196394

SUN FRAC 1

228059

176755

SUN FRAC 2

228060

176756

TOGO 1

228049

176769

TOGO 2

228050

176770

TOGO 3

228051

176771

DEWEY FRAC Amended

248739

177253

Powder 1

269506

190491

Powder 2

269505

190492

LDC-1

224140

174579

LDC-2

224141

174580

LDC-3

224142

174581

LDC-5

224144

174583

LDC-6

224145

174584

LDC-7

224146

174585

LDC-8

224147

174586

LDC-9

224148

174587

LDC-10

224149

174588

LDC-11

224150

174589

LDC-12

224151

174590

LDC-13 Amended

248718

174591

LDC-14 Amended

248719

174592

LDC-16

224155

174594

LDC-18

224157

174596

LDC-20

224159

174598

LDC-22

224161

174600

LDC FRAC 1 Amended

248720

175880

LDC FRAC 2 Amended

248721

175881

LDC FRAC 3 Amended

248722

175882

LDC FRAC 4 Amended

248723

175883

LDC FRAC 5 Amended

248724

175884

RAM 1

228501

176757

RAM 2

228502

176758

RAM 3

228503

176759

RAM 4

228504

176760

RAM 5

228505

176761

RAM 6

228506

176762

RAM 7

228507

176763

RAM 8

228508

176764

RAM 9

228509

176765

RAM 10

228510

176766

RAM 11

228511

176767

RAM 12

228512

176768

RAM 13 Amended

245700

181276

RAM 14 Amended

245699

181277

RAM 15 Amended

245698

181278

RAM 16 Amended

245697

181279

Ram Frac 1 Amended

245696

178081

Ram Frac 2 Amended

245695

178082

Ram Frac 3 Amended

245694

178083

Ram Frac 4 Amended

245693

178084

HZ 1

224173

174639

HZ 2

224174

174640

HZ 3

224175

174641

HZ 4

224176

174642

HZ 5

224413

174643

HZ 6

224414

174644

HZ 7

224415

174645

HZ 8

224416

174646

HZ 9

224417

174647

HZ 10

224418

174648

HZ 11

224419

174649

HZ 12

224420

174650

HZ 13

224421

174651

HZ 14

224422

174652

HZ 15

231338

178085

HZ 16

231339

178086

HZ 18

231340

178087

HZ 19

224427

174657

Z 20

224428

174658

HZ 21

224193

174659

HZ 22

224194

174660

HZ 23

224195

174661

HZ 24

224196

174662

HZ 25

224197

174663

HZ 26

224198

174664

HZ 27

224199

174665

HZ 28

224200

174666

HZ 29

224201

174667

HZ 30

224202

174668

HZ 31

224203

174669

HZ 32

224204

174670

HZ FRAC

228967

177254

JC 1

224165

174631

JC 2

224166

174632

JC 3

224167

174633

JC 4

224168

174634

JC 5 Amended

245689

174635

JC 6

224170

174636

JC FR 7

224171

174637

JC FR 8

224172

174638

JC 9

228054

176750

JC 10

228055

176751

JC 11

228056

176752

JC-12

228057

176753

JC-13

228058

176754

JC 14

228971

177250

JC 15

228970

177251

JC 16

228969

177252

JC 17

259006

187091

JC 18

259007

187092

JC 19

259008

187093

JC 20

259009

187094

JC 21

259010

187095

JC 22

259011

187096

CHELAN NO. 1 Amended

248345

175861

GOOSE 2 Amended

259554

175863

GOOSE 3

227285

175864

GOOSE 4 Amended

259553

175865

GOOSE 6

227282

175867

GOOSE 7 Amended

259552

175868

GOOSE 8 Amended

259551

175869

GOOSE 10 Amended

259550

175871

GOOSE 11 Amended

259549

175872

GOOSE 12 Amended

259548

175873

GOOSE 13

228028

176729

GOOSE 14 Amended

259547

176730

GOOSE 15

228030

176731

GOOSE 16

228031

176732

GOOSE 17

228032

176733

GOOSE 18 Amended

259546

176734

GOOSE 19 Amended

259545

176735

GOOSE 20

228035

176736

GOOSE 21

228036

176737

GOOSE 22

228037

176738

GOOSE 23

228038

176739

GOOSE 24

228039

176740

GOOSE 25

228040

176741

SOUTH ID 1 Amended

248725

175874

SOUTH ID 2 Amended

248726

175875

SOUTH ID 3 Amended

248727

175876

SOUTH ID 4 Amended

248717

175877

SOUTH ID 5 Amended

248715

176743

SOUTH ID 6 Amended

248716

176744

South ID 7

306433

218216

South ID 8

306434

218217

South ID 9

306435

218218

South ID 10

306436

218219

South ID 11

306437

218220

South ID 12

306438

218221

South ID 13

306439

218222

South ID 14

306440

218223

OMS-1

307477

218904

Chip 1

248956

184883

Chip 2

248957

184884

Chip 3 Amended

277465

196402

Chip 4 Amended

277466

196403

Chip 5 Amended

277467

196404

Chip 6 Amended

277468

196405

Chip 7 Amended

277469

196406

Chip 8 Amended

277470

196407

Chip 9 Amended

277471

196408

Chip 10 Amended

277472

196409

Chip 11 Amended

277473

196410

Chip 12 Amended

277474

196411

Chip 13 Amended

277475

196412

Chip 14 Amended

277476

196413

Chip 15 Amended

277477

196414

Chip 16 Amended

277478

196415

Chip 17 Amended

277479

196416

Chip 18 Amended

277480

196417

Sun 20

306042

218133

Sun 21

306043

218134

Sun 22

306044

218135

Sun 23

306045

218136

Sun 24

306046

218137

Sun 25

306047

218138

Sun 26

306048

218139

Sun 27

306049

218140

Sun 28

306050

218141

Sun 29

306051

218142

Sun 30

306052

218143

Sun 31

306053

218144

Sun 32

306054

218145

Sun 33

306055

218146

Sun 34

306056

218147

Sun 35

306057

218148

Sun 36

306058

218149

Chip 21 Fraction

306059

218113

Chip 22 Fraction

306060

218114

Chip 23

306025

218115

Chip 24

306026

218116

Chip 25

306027

218117

Chip 26

306028

218118

Chip 27

306029

218119

Chip 28

306030

218120

Chip 29

306031

218121

Chip 30

306032

218122

Chip 31

306033

218123

Chip 32

306034

218124

Chip 33

306035

218125

Chip 34

306036

218126

Chip 35

306037

218127

Chip 36

306038

218128

Chip 37

306039

218129

Chip 38

306040

218130

Chip 39

306041

218131

Chip 40

307491

218895

DRC NW 1

307492

218847

DRC NW 2

307493

218848

DRC NW 3

307494

218849

DRC NW 4

307495

218850

DRC NW 5

307496

218851

DRC NW 6

307497

218852

DRC NW 7

307498

218853

DRC NW 8

307499

218854

DRC NW 9

307500

218855

DRC NW 10

307501

218856

DRC NW 11

307502

218857

DRC NW 12

307503

218858

DRC NW 13

307504

218859

DRC NW 14

307505

218860

DRC NW 15

307506

218861

DRC NW 16

307507

218862

DRC NW 17

307508

218863

DRC NW 18

307509

218864

DRC NW 19

307510

218865

DRC NW 20

307511

218866

DRC NW 21

307512

218867

DRC NW 22

307513

218868

DRC NW 23

307514

218869

DRC NW 24

307515

218870

DRC NW 25

307516

218871

DRC NW 26

307517

218872

DRC NW 27

307518

218873

DRC NW 28

307519

218874

DRC NW 29

307520

218875

DRC NW 30

307521

218876

DRC NW 31

307522

218877

DRC NW 32

307523

218878

DRC NW 33

307524

218879

DRC NW 34

307525

218880

DRC NW 35

307526

218881

DRC NW 36

307527

218882

DRC NW 37

307528

218883

DRC NW 38

307529

218884

DRC NW 39

307530

218885

DRC NW 40

307531

218886

DRC NW 41

307532

218887

DRC NW 42

307533

218888

DRC NW 43

307534

218889

DRC NW 44

307535

218890

DRC NW 45

307536

218891

DRC NW 46

307537

218892

DRC NW 47

307538

218893

DRC NW 48

307539

218894

EBatt 1

307483

218896

EBatt 2

307484

218897

EBatt 3

307485

218898

EBatt 4

307486

218899

EBatt 5

307487

218900

EBatt 6

307488

218901

EBatt 7

307489

218902

EBatt 8

307490

218903

OMM-1

307478

218905

OMM-2

307479

218906

OMN-2

307481

218908

OMN-3

307482

218909

BTG-1

307471

218910

BTG-2

307472

218911

BTG-3

307473

218912

BTG-4

307474

218913

BTG-5

307475

218914

BTG-6

307476

218915

NFX 17

307230

218685

NFX 18

307231

218686

NFX 19

307232

218687

NFX 20

307233

218688

NFX 21

307234

218689

NFX 22

307235

218690

NFX 23

307236

218691

NFX 24

307237

218692

NFX 25

307238

218693

NFX 30

307243

218698

NFX 31

307244

218699

NFX 32

307245

218700

NFX 33

307246

218701

NFX 34

307247

218702

NFX 35

307248

218703

NFX 36

307249

218704

NFX 37

307250

218705

NFX 38

307251

218706

NFX 42

307255

218710

NFX 43

307256

218711

NFX 44

307257

218712

NFX 45

307258

218713

NFX 46

307259

218714

NFX 47

307260

218715

NFX 48

307261

218716

NFX 49

307262

218717

NFX 50

307263

218718

NFX 56

307269

218724

NFX 57

307270

218725

NFX 58

307271

218726

NFX 59

307272

218727

NFX 60 Amended

307558

218728

NFX 61

307274

218729

NFX 62

307275

218730

NFX 63

307276

218731

NFX 64

307277

218732

OMN-1 revised

315879

228322

  

Black Pine – 100% Interest Owned

Claim Name

Book & Page

County #

IMC #

NOAH #1       

304761

217757

NOAH #2

304762

217758

NOAH #3

304763

217759

NOAH #4

304764

217760

NOAH #5

304765

217761

NOAH #6

304766

217762

NOAH #7

304767

217763

NOAH #8

304768

217764

NOAH #9

304769

217765

NOAH #10

304770

217766

NOAH #11 Amended

305804

218081

NOAH #12

305803

218082

NOAH #13 FRAC

305802

218083

NOAH #14

305805

218084

NOAH #15

305806

218085

NOAH #16

305807

218086

NOAH #17

305808

218087

NOAH #18

305809

218088

NOAH #19

305810

218089

NOAH #20

305811

218090

NOAH #21

305812

218091

NOAH #22

305813

218092

NOAH #23

305814

218093

 

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Name of entity

Jervois Mining Limited

ABN

Quarter ended (“current quarter”)

52 007 626 575

 

30 June 2021

 

Consolidated statement of cash flows

Current quarter
$A’000

Year to date

(6 months) $A’000

1.

Cash flows from operating activities

-

-

1.1

Receipts from customers

1.2

Payments for

-

-

 
  1. (a)exploration & evaluation  

 
  1. (b)development 

-

-

 
  1. (c)production 

-

-

 
  1. (d)staff costs 

(1,221)

(2,256)

 
  1. (e)administration and corporate costs 

(518)

(1,239)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

-

-

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes paid

-

-

1.7

Government grants and tax incentives

62

62

1.8

Other – business development costs

(1,832)

(2,104)

1.9

Net cash from / (used in) operating activities

(3,509)

(5,537)

 
 

2.

Cash flows from investing activities

-

-

2.1

Payments to acquire or for:

 
  1. (a)entities 

 
  1. (b)tenements 

-

-

 
  1. (c)property, plant and equipment – incl. assets under construction 

(3,233)

(4,800)

 
  1. (d)exploration & evaluation  

(13)

(53)

 
  1. (e)investments 

-

-

 
  1. (f)other non-current assets 

-

-

2.2

Proceeds from the disposal of:

-

-

 
  1. (a)entities 

 
  1. (b)tenements 

-

-

 
  1. (c)property, plant and equipment 

25

30

 
  1. (d)investments 

-

-

 
  1. (e)other non-current assets 

-

-

2.3

Cash flows from loans to other entities

-

-

2.4

Dividends received (see note 3)

-

-

2.5

Other – SMP Refinery Purchase: lease payment

(1,143)

(1,489)

2.6

Net cash from / (used in) investing activities

(4,364)

(6,312)

 

3.

Cash flows from financing activities

-

-

3.1

Proceeds from issues of equity securities (excluding convertible debt securities)

3.2

Proceeds from issue of convertible debt securities

-

-

3.3

Proceeds from exercise of options

-

2,709

3.4

Transaction costs related to issues of equity securities or convertible debt securities

-

-

3.5

Proceeds from borrowings

-

-

3.6

Repayment of borrowings

-

-

3.7

Transaction costs related to loans and borrowings

-

-

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

-

-

3.10

Net cash from / (used in) financing activities

-

2,709

 

4.

Net increase / (decrease) in cash and cash equivalents for the period

   

4.1

Cash and cash equivalents at beginning of period

41,039

42,331

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(3,509)

(5,537)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(4,364)

(6,312)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

-

2,709

4.5

Effect of movement in exchange rates on cash held

100

75

4.6

Cash and cash equivalents at end of period

33,266

33,266

 

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

33,266

33,266

5.2

Call deposits

-

-

5.3

Bank overdrafts

-

-

5.4

Other (provide details)

-

-

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

33,266

33,266

6.

Payments to related parties of the entity and their associates

Current quarter
$A

6.1

Aggregate amount of payments to related parties and their associates included in item 1

184

6.2

Aggregate amount of payments to related parties and their associates included in item 2

-

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

 

7.

Financing facilities
Note: the term “facility’ includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

7.1

Loan facilities

-

-

7.2

Credit standby arrangements

-

-

7.3

Other (please specify)

-

-

7.4

Total financing facilities

-

-

     

7.5

Unused financing facilities available at quarter end

-

7.6

Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

 
 

8.

Estimated cash available for future operating activities

$A’000

8.1

Net cash from / (used in) operating activities (item 1.9)

(3,509)

8.2

(Payments for exploration & evaluation classified as investing activities) (item 2.1(d))

(13)

8.3

Total relevant outgoings (item 8.1 + item 8.2)

(3,522)

8.4

Cash and cash equivalents at quarter end (item 4.6)

33,266

8.5

Unused finance facilities available at quarter end (item 7.5)

-

8.6

Total available funding (item 8.4 + item 8.5)

33,266

     

8.7

Estimated quarters of funding available (item 8.6 divided by item 8.3)

9.45

Note: if the entity has reported positive relevant outgoings (i.e., a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.

8.8

If item 8.7 is less than 2 quarters, please provide answers to the following questions:

 

8.8.1        Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

 

Answer:

               
 

8.8.2        Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

 

Answer:

 
 

8.8.3        Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

 

Answer:

 
 

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

 

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

  

Date:        30 July 2021

  

Authorised by:        Disclosure Committee

(Name of body or officer authorising release – see note 4)

 

Notes

1.        This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.        If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.        Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.        If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committeee.g., Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5.        If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

     

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES