Ann: Jervois secures US$100 million bond offering to fund ICO, page-10

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Jervois secures US$100 million bond offering to fund Idaho Cobalt Operations

Highlights:
- Jervois has successfully priced and closed the books on its subsidiary’s offering of senior secured
bonds to raise US$100 million, guaranteed by Jervois
- Proceeds from the bond issue will be used to fund construction of Jervois’ Idaho Cobalt
Operations (“ICO”) in the United States (“U.S.”) and bring it into production
- Jervois expects to commence commercial concentrate production at ICO from mid-2022
- The bond issue is repayable in mid-2026 and 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 U.S. Government
Jervois Mining Limited (“Jervois” or the “Company”) (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) announces
it has 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”).
Clarksons Platou Securities AS acted as managers for the Nordic-style Bond Offering,
launched as a private placement seeking proceeds of US$80 -100 million. The bonds were priced with
an annual coupon of 12.5% and an issue discount to par of 2%.
Commercial Flexibility Preserved
Jervois is not required to enter into any external off-take agreements for Idaho Cobalt Operations
(“ICO”) concentrates, except in certain limited circumstances at a later date, under the Bond Terms
(as defined below). The Company will continue with plans to process the concentrates at the São
Miguel Paulista (“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.
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