Due to rising cobalt prices, Jervois Finland increased its working capital facility with Mercuria Energy Trading SA (“Mercuria”) from US$75 million to US$150 million.
This extends Jervois’ flexibility to fund future increases in working capital that may result from higher cobalt prices.
All amounts due under the facility agreement will continue to be secured by the assets of Jervois Finland, including working capital.
Victoria, Australia – The Newswire – June 6, 2022, Jervois Global Limited (“Jervois”) (ASX:JRV) (TSX-V:JRV) (OTC:RVMF) advises its subsidiaries Jervois Suomi (Holding) Oy and Jervois Finland Oy (“Finland“or the”Borrowers”) concluded a US$75 million increase in the Secured Loan Facility (the “Ease”) with Mercuria Energy Trading SA, a wholly owned subsidiary of Mercuria Energy Group Limited (“Mercury”).
The facility, dated October 28, 2021, had an initial limit of $75 million (now fully drawn) and included an uncommitted increase of an additional $75 million (“The Accordion”). Mercuria has now committed to raise Accordion by US$75 million.
The principal terms of the facility remain consistent with Jervois’ announcement to the market on October 29, 2021. The facility continues to have a maturity date of December 31, 2024, with annual interest payable on amounts drawn from LIBOR+5 .0%. Borrowers can draw at the lower of the maximum amount and 80% of the value of the guarantee, the guarantee being defined as the value of Jervois Finland’s inventories and receivables, calculated monthly (reduced to 70% for eligible inventories in Finland exceeding USD 75 million).
The facility is collateralized by Jervois Finland shares held by Jervois Global and assets held by the Jervois Finland group of companies, and is guaranteed by Jervois Global. A maximum of US$50 million may be transferred out of the Jervois Finland group of companies, for other general purposes within the Jervois Global group.
The complete terms and conditions of the facility have been filed and are available on Jervois’ corporate profile on SEDAR at www.sedar.com.
On behalf of Jervois Global Limited
Bryce Crocker, CEO
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