Jervois Mining, eCobalt Will Combine

eCobalt’s fully permitted Idaho Cobalt Project, is in the heart of the Idaho Cobalt Belt. (Photo: eCobalt)
Jervois Mining Ltd. and eCobalt Solutions Inc. have entered into an arrangement to combine. In the transaction, Jervois will acquire all of the issued and outstanding common shares of eCobalt that Jervois does not already own. On January 22, Jervois announced it would complete an at-market merger with M2 Cobalt Corp. by acquiring all of the shares of M2 Cobalt. The M2 Cobalt Merger will proceed as previously announced and is expected to be completed in advance of the Jervois transaction.

After closing of the M2 Cobalt merger, the board of directors of the pro forma company will consist of three nominees from Jervois and two nominees from eCobalt. Existing Jervois Chairman Peter Johnston and CEO Bryce Crocker will continue in their existing roles in New Jervois. Dundee Resources Ltd. has agreed to subscribe for approximately 6.3 million units for aggregate gross proceeds to eCobalt of approximately C$2 million.

The transaction will result in the issue of approximately 262.4 million new Jervois common shares and, if all eCobalt options and warrants were to be exercised, a further 47 million new Jervois common shares. Upon completion of the transaction and after taking into effect the Dundee Placement, ownership of the combined company will be approximately 40% Jervois, and 47% eCobalt, M2 Cobalt will retain 11%.

As featured in Womp 2019 Vol 04 -