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    Jervois sets sights on cobalt supremacy with USD$160M Freeport purchase

    Jervois Mining Limited (ASX: JRV) has announced that it will acquire 100% of Finland-based Freeport Cobalt in a USD$160 million deal with owner Koboltti Chemicals Holdings Limited (KCHL).

    The acquisition, pursuant to a stock purchase agreement, would see Jervois transformed into the second-largest refined cobalt producer outside of China, building on existing capacity in the United States along with a seperate new refinery asset in Brazil.

    The acquisition…would see Jervois transformed into the second-largest refined cobalt producer outside of China

    Deal funded via capital raising

    The deal will be funded via an AUD$313 million fully-underwritten equity raising, with a number of key participants:

    • Mercuria, the world’s largest independent energy and commodity trader, is expected to contribute USD$40 million
    • AustralianSuper will invest ~AUD$50 million + further sub-underwrite the entitlement offer for ~AUD$33 million
    • Freeport-McMoRan and Lundin Mining (shareholders of KCHL) will sub-underwrite the entitlement offer up to ~AUD$66 million
    • Jervois directors and management will invest A$3.5 million

    About Freeport Cobalt

    Since 1968, Freeport Cobalt has been a world leader in the production of cobalt products for key global markets. It is strategically placed in a competitive industrial park in Kokkola, Finland, adjacent to vital markets.

    The Freeport Cobalt business was separated from the refinery and battery materials operations in 2019, which was sold to Umicore. Freeport Cobalt retains contractual rights to about 40% of the Kokkola refinery’s capacity, as well as ownership of downstream advanced materials processing capabilities.

    Freeport Cobalt sources its own cobalt feed materials from premier worldwide vendors and adheres to a responsible sourcing system that follows best practises. Through the Responsible Minerals Initiative’s Downstream Assessment Program, it is the first cobalt chemical business to obtain Conformant Cobalt Downstream Facility designation.

    Tristan Lal
    Originally from Canada, Tristan contributes daily breaking news to Mining.com.au. Tristan completed her Bachelor of Journalism in Queensland, Australia and has over 10 years experience writing on a range of topics including resources, medical, construction, and business.

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    • Delayed Prices (USD) - Last Updated 27-06-2022
    • Gold $1,826.40
    • Silver $21.14
    • Platinum $908.00
    • Palladium $1,802.00
    • Dalian Iron Ore i2209 $113.98
    • Aluminium $2,456.00
    • Cobalt $72,400.00
    • Copper $8,381.00
    • Lead $1,915.00
    • Nickel $22,400.00
    • Tin $24,590.00
    • Zinc $3,350.00