logo-loader
viewJervois Mining Ltd

Jervois Mining’s merger with M2 Cobalt will boost East African ambitions

The at-market transaction will provide Jervois with significant re-rating potential.

1548142804_merger-sign.jpg
Canadian company M2 Cobalt has highly prospective properties in Uganda

Jervois Mining Limited (ASX:JRV) has entered into a definitive agreement to merge with TSXV-listed explorer M2 Cobalt Corp (CVE:MC), adding Uganda to the company’s East African ambitions

The friendly at-market merger transaction will provide greater scale, liquidity and diversification as well as re-rating potential.

A Plan of Arrangement under the Business Incorporations Act will complete the transaction whereby Jervois will acquire all of M2 Cobalt’s common shares.

“Enthusiastic” about potential

Melbourne-based Jervois is enthusiastic about the exploration potential of M2 Cobalt’s portfolio of tenements in Uganda.

The East African country hosts a continuation of geological trends from neighbouring DRC and has a history of copper-cobalt production.

M2 Cobalt’s Kilembe area consists of five exploration licences covering 710 kilometres along strike from the historical Falconbridge mine.

Strong platform to pursue opportunities

That company’s experience in Uganda provides a strong platform for Jervois to pursue opportunities at and around the historic Kilembe mine and Kasese Cobalt Refinery.

The Kilembe mine holds strong exploration potential along strike in both directions on licences controlled by M2 Cobalt, where drill ready targets at the Bujagali prospects will be immediately funded by a convertible loan from Jervois.

Transaction summary

The arrangement will be subject to approval by two-thirds of M2 Cobalt shareholders.

In addition, the arrangement is also subject to the receipt of certain regulatory, court and stock exchange approvals, as well as Jervois being accepted for listing on the TSX Venture Exchange (TSXV).

The company will keep its primary listing on the ASX, while continuing M2 Cobalt’s listing on the TSXV, thus providing access to Australian and North American markets.

Large cobalt-nickel operations

Jervois’ current asset is the Nico Young cobalt-nickel deposit in New South Wales, where the company is close to finalising a pre-feasibility study on 3.0 million tonnes per annum heap leach facility.

After construction, the facility will be one of Australia’s largest cobalt-nickel operations.

The company has also applied for a prospecting licence over the Kabanga Nickel Project in Tanzania and considers that entry into Uganda will complement its East African regional ambitions.

- Jessica Cummins

Quick facts: Jervois Mining Ltd

Price: 0.18 AUD

ASX:JRV
Market: ASX
Market Cap: $115.49 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Fertoz continues to plan for the future despite extremely...

Fertoz Ltd (ASX: FTZ) Executive Chairman Patrick Avery joined Steve Darling from Proactive Vancouver on Skype to discuss what has been a very tough weather year for the company. Even with that, Avery says the company has been very busy this year signing a number of distribution...

1 day, 22 hours ago

2 min read