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.
