Jervois Pays Tranche 1 of SMP Refinery Purchase and Enters Lease

 

(TheNewswire)

   

TheNewswire December 7 th 2020 - Jervois Mining Limited ("Jervois" or the "Company") (ASX:JRV) (TSXV:JRV) (OTC:JRVMF) advises that it has paid the first tranche of R$15 million (US$2.9 million*) cash for the acquisition of the São Miguel Paulista nickel-cobalt refinery (" SMP Refinery "), in the city of São Paulo, Brazil.

 

  Following this payment Jervois and Companhia Brasileira de Alumínio ("   CBA   "), a 100% owned subsidiary of Votorantim SA, have entered into an initial lease arrangement ("   Refinery Lease   ")   providing Jervois access to undertake a Feasibility Study ("   FS   ") for the restart.  Subject to Jervois' Early Termination Right up to September 2021, the lease shall continue until closing of Jervois' acquisition of SMP Refinery ("   Closing   ") which is subject to the satisfaction of usual condition precedents and is expected to occur by December 2021.  

 

  On Closing, the first tranche of R$15 million (US$2.9 million*) shall be applied to the R$125 million (US$24.0 million*) cash SMP Refinery purchase price.  The timing of the balance of the purchase price is conditional upon permitting, restart FS outcomes and future production thresholds – with an outside date of June 2023.  

 

  As part of the purchase arrangements and as contained in the Refinery Lease, Jervois will pay for SMP Refinery care and maintenance (including environmental remediation) of the site from March 2021, via the cash payment of a monthly lease cost of R$1.5 million (US$0.3 million*).  Up until Closing, CBA will continue to manage the site.  After Closing, 100% ownership and operating control will transfer to Jervois as it moves forward to restart the refinery.  

 

  As announced on 27 November 2020, Elemental Engineering have commenced sysCAD modelling of the SMP Refinery flowsheet for optimization of product integration, including hydroxides and carbonate products, oxides and sulphide concentrates.  Jervois' recently established commercial team, led by Greg Young based in the United States, are actively pursuing supply contracts for nickel and cobalt intermediates to process alongside concentrate from Jervois's 100% owned Idaho Cobalt Operations in the United States.  

 

  On behalf of Jervois Mining Limited  

 

  Bryce Crocker, CEO.  

 

  For further information, please contact:  

 
  
 

  Investors and analysts:  

 

  Bryce Crocker  

 

  Chief Executive Officer  

 

  Jervois Mining Limited  

 

   bcrocker@jervoismining.com.au   

 
 

  Media:  

 

  Nathan Ryan  

 

  NWR Communications  

 

   nathan.ryan@nwrcommunications.com.au   

 

  Mob: +61 420 582 887  

 
 

  About SMP Refinery  

 

  SMP Refinery is a nickel and cobalt electrolytic refinery designed and constructed by Outotec that commenced operations in 1981.  The facility is located in an industrial zone in the city of São Paulo, Brazil.  It was placed on care and maintenance by CBA in 2016 after its primary source of raw materials at the time, CBA's   Niquelândia   nickel-cobalt mine in the Brazilian State of   Goiás   , was also paused.  SMP Refinery's production capacity was 25,000 metric tonnes per annum ("   mtpa   ") of refined nickel cathode and 2,000mtpa refined cobalt cathode.  

 

  SMP Refinery produced electrolytic nickel with 99.9% purity, exceeding the base specification required by the London Metal Exchange ("   LME   ").  This product was historically used in premium applications such as superalloys, specialty stainless steels, electroplating and batteries.  SMP Refinery broken cobalt cathodes were also of high quality and historically used in superalloys and batteries.  Nickel and cobalt cathodes were sold under the brand "Tocantins" and have an established customer base in key regions of demand today – the United States, Europe and Japan.  

 

  "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."  

 

Copyright (c) 2020 TheNewswire - All rights reserved.

 

News Provided by TheNewsWire via QuoteMedia

The Conversation (0)
Closeup of vibrant blue crystals on a textured surface.

Cobalt Blue's Broken Hill Project Gets Major Project Status Extension

Cobalt Blue Holdings' (ASX:COB) Broken Hill cobalt project has received a further three years of major project status.

The extension of major project status for Broken Hill follows the project's initial designation originally granted in March 2022, and supports the continued development of this key asset in remote western New South Wales.

The project spans approximately 37 square kilometres.

Keep reading...Show less
Democratic Republic of Congo flag.

Cobalt Prices Surge as DRC Extends Export Ban to September

Cobalt prices are surging after the Democratic Republic of Congo (DRC), the world’s largest producer, extended its export ban by three months in a bid to address global oversupply and stabilize plunging prices.

According to the Financial Times, cobalt prices on China’s Wuxi Stainless Steel Exchange rose nearly 10 percent after the DRC government announced the news over the weekend.

The ban — originally set to expire on Monday (June 23) — will now remain in effect until at least September.

Keep reading...Show less
A lithium-ion battery in the foreground with a line of batteries in the background, all surrounded by blue swirls.

ASX Cobalt Stocks: 4 Biggest Companies in 2025

After spending much of the last two years trending downwards, the cobalt price is spiking in 2025.

About 75 percent of global cobalt output comes from the Democratic Republic of Congo (DRC). While electric vehicle (EV) demand has remained positive, cobalt oversupply has weighed on markets and hurt efforts to build supply chains outside of the DRC.

However, the country banned exports of cobalt in February in an effort to increase the metal's falling price. By mid-March, cobalt had spiked to US$36,170 per tonne, up more than 65 percent from its record-low price of US$21,550 hit in late January.

Increasing electric vehicle (EV) and lithium-ion battery demand is expected to be supportive for key battery raw materials in the coming years. This means that as demand for EVs increases, so too will demand for cobalt — and, as one of the top four cobalt-producing countries in the world, Australia finds itself in a position to capitalise on this demand.

Keep reading...Show less
Electric car charging, wind turbine and cityscape double exposure.

Cobalt Market Update: Q1 2025 in Review

Cobalt metal prices fell to a nine year low in February after another year of oversupply, but rebounded sharply after the Democratic Republic of Congo (DRC) instituted a four month export pause for the critical metal.

After starting the year at US$24,495 per metric ton, cobalt ended the three month period at US$34,040.40, a strong 39 percent increase from January’s value. The price spread between cobalt’s first quarter low of US$21,467.70 on January 29 and its Q1 high of US$36,262 on March 17 is even more impressive at 69 percent.

The drop to US$21,467.70 marked the battery metal's lowest level since February 2016.

Keep reading...Show less
A Canada flag on a compass pointing towards the word "invest."

Electra Secures Federal Support for North America’s Only Cobalt Sulfate Refinery

Electra Battery Materials (TSXV:ELBM,NASDAQ:ELBM) announced on March 21 that it has received a letter of intent from the Canadian government for C$20 million in proposed funding.

The money would support the construction and commissioning of North America’s first battery-grade cobalt refinery, a critical step toward strengthening the region’s electric vehicle (EV) supply chain.

The refinery, located in Temiskaming Shores, Ontario, is set to produce 6,500 metric tons of cobalt sulfate annually, enabling domestic production of up to 1 million EVs per year. According to Electra, it would be a key step in reducing North America's dependence on China, which currently refines approximately 90 percent of the world’s cobalt.

Keep reading...Show less

Latest Press Releases

Related News

×