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Jervois Mining and eCobalt Solutions Merger Under the Spotlight

The merger, which is valued at approximately C$59.9 million, is facing opposition from majority shareholder First Cobalt.

At a time when battery and electric car makers continue to face challenges surrounding the security and transparency of cobalt supply, one of the most expected cobalt mergers of 2019 is now under the spotlight.

In April, Australian miner Jervois Mining (ASX:JRV) and Idaho-focused eCobalt Solutions (TSX:ECS,OTCQX:ECSIF) announced that they were set to combine to become a leading company in the cobalt space, but eCobalt’s majority shareholder First Cobalt (TSXV:FCC,OTCQX:FTSSF) has urged investors to vote against the transaction.

The merger is valued at approximately C$59.9 million — a 5.8 percent premium to eCobalt’s closing price on March 29.

First Cobalt, which currently owns a 5.8 percent interest in eCobalt, said the deal was “incredibly dilutive.” The company pointed to new risks associated with the combination, such as unproven exploration land in the “highly unstable” country of Uganda obtained through Jervois’ buyout of M2 Cobalt (TSXV:MC), as well as the Australian company’s undeveloped nickel project, the Nico Young asset, which is currently in the prefeasibility study stage.

“The eCobalt board did not fulfill its fiduciary duty to explore all other value-maximizing options before entering into an agreement that triggers generous management severance payments and contains a C$3 million break fee, which impedes a superior offer,” the open letter to investors read.

For First Cobalt, the sale process did not maximize shareholder value, with the company, which is developing the Iron Creek project in Idaho, claiming that eCobalt did not disclose all the facts. According to First Cobalt, eCobalt received a letter from a “highly respected mining private equity” firm indicating that it was interested in funding the entire capital requirement to build eCobalt’s Idaho cobalt project (ICP).

ECobalt was quick to respond to First Cobalt’s claims, and for its part urged shareholders to vote in favor of the deal, saying that First Cobalt’s press release was misleading and that it was self-serving.

“First Cobalt has failed to disclose what its true intentions are with respect to eCobalt,” the company said. “Its aggressive opposition to the proposed Jervois merger is a last-resort attempt to gain access to eCobalt’s superior quality asset base.”

ECobalt’s environmentally permitted ICP is located in the heart of the Idaho Cobalt Belt, with a resource of 45.7 million pounds of cobalt at 0.59 percent cobalt in the measured and indicated categories. Currently, a new feasibility study is underway to evaluate increasing the throughput rate from 800 tonnes per day to 1,200 tonnes per day at the future mine.

“The claim that superior offers were available is false,” eCobalt said. “Although eCobalt was in discussions with several parties, none were able to provide the funding needed to advance the Idaho cobalt project nor provided accretive alternatives for creating long-term shareholder value.”

Commenting about the future of the cobalt project, First Cobalt said the transaction did not advance the asset neither technically nor financially. For the company, which has received support from Glencore (LSE:GLEN,OTC Pink:GLCNF) to restart its cobalt refinery in Ontario, there are two options going forward for eCobalt if shareholders vote against the merger, either remain independent or run “a formal and competitive sale process.”

However, eCobalt emphasized that Jervois is committed to aggressively advancing the Idaho cobalt project.

“The merger agreement specifically states that Jervois will spend C$10 million on the ICP project over the next 18 months towards the completion of the feasibility study and into construction,” eCobalt replied in a release, adding that the CEO and chairman of eCobalt had agreed to go onto the board of Jervois to strengthen the team.

Jervois also added in a separate statement that it had the technical strength and access to capital needed in order to progress the ICP into production. “First Cobalt simply has neither,” the company said.

A meeting is set for July 18, during which Jervois shareholders will vote on the merger, while eCobalt investors will vote on July 19. Prior to announcing the deal, the arrangement agreement was unanimously approved by the board of directors of both Jervois and eCobalt.

On Tuesday (July 2), shares of Jervois Mining closed unchanged at AU$0.21 in Sydney; meanwhile, shares of First Cobalt closed up 3.33 percent at C$0.16 in Toronto.

Don’t forget to follow us at @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: First Cobalt is a client of the Investing News Network. This article is not paid-for content.

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Highlights: – Former Xstrata plc executive, Mr. Ian Woolsey, has joined Jervois as Group Manager Information Technology – Mr. Woolsey will lead the IT integration of Freeport Cobalt in Finland, Idaho Cobalt Operations in the United States and the São Miguel Paulista nickel-cobalt refinery in Brazil – Mr. Woolsey joins Jervois after more than 10 years with Glencore Xstrata where he led the IT integration of major …

(TheNewswire)

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AustralianSuper announces that it acquired 47,534,965 ordinary shares in the capital of Jervois Mining Limited on 27 October 2020 and a further 13,120,773 Shares on 3 December 2020 such that immediately following the second acquisition, AustralianSuper held a total of 108,450,700 of the issued and outstanding Shares in Jervois. The Shares were acquired pursuant to private placements by Jervois to institutional and …

AustralianSuper announces that it acquired 47,534,965 ordinary shares (“Shares”) in the capital of Jervois Mining Limited (ASX: JRV) (TSXV: JRV) (“Jervois”) on 27 October 2020 and a further 13,120,773 Shares on 3 December 2020 such that immediately following the second acquisition, AustralianSuper held a total of 108,450,700 (or approximately 13.71%) of the issued and outstanding Shares in Jervois.

The Shares were acquired pursuant to private placements by Jervois to institutional and sophisticated investors. The average purchase price per Share was AUD0.305/ CAD0.29 for an aggregate total purchase consideration of AUD18.5 million/ CAD17.6 million .

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HIGHLIGHTS: -James May becomes Jervois’ CFO after almost 15 years in leadership roles with Rio Tinto -Mr May’s most recent role in Rio Tinto was as Interim Vice President, Sales and Marketing for the Energy & Minerals portfolio, based in Singapore -Mr May was also previously the CFO of Energy Resources of Australia Limited, an ASX-listed uranium miner, majority owned by Rio Tinto -Mr May also worked in various …

(TheNewswire)

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Which ASX technology stocks performed the best in 2021? Here’s a look at the five top ASX technology stocks by share price performance.

Australia is home to a thriving tech sector with fresh investment opportunities emerging across a variety of subsectors, such as gaming, fintech, healthcare and cleantech.

The technology sector currently contributes about AU$167 billion to the Australian economy, according to research commissioned by the Technology Council of Australia. This figure has increased by 79 percent from 2016, representing a growth rate that is more than four times that of most industries. In fact, the tech sector is the third largest economic sector in Australia, behind mining and finance/insurance.

Unsurprisingly, many tech stocks on the ASX have performed well in this landscape.


Below the Investing News Network profiles the five best ASX technology stocks in terms of share price performance in 2021. Data for the companies was gathered on December 31, 2021, using TradingView’s stock screener, and all of the best ASX technology stocks listed had market caps above AU$10 million at that time.

1. Novonix

Market cap: AU$4.45 billion; year-to-date gain: 659.5 percent

The first of the best ASX tech stocks on this list is battery technology company Novonix (ASX:NVX), which specializes in developing battery testing equipment for the worldwide lithium-ion battery market. The company was spun out from Dr. Jeff Dahn’s lab at Dalhousie University; Dr. Dahn is one of the pioneers of the lithium-ion battery.

While not yet a revenue generator, the company has benefited from the explosive growth expected out of the fast-moving global electric vehicle (EV) industry.

In December, Novonix announced preliminary results from an environmental impact study; they show the company’s synthetic graphite EV and energy storage system (ESS) battery anode product offers an approximate 60 percent decrease in CO2 emissions, potentially making it “2.5 times better for the environment than Chinese synthetic graphite EV and ESS battery anode material,” as per the Market Herald.

2. Oneview Healthcare

Market cap: AU$114.57 million; year-to-date gain: 488.89 percent

Oneview Healthcare’s (ASX:ONE) interactive software platform offers digital tools to healthcare providers, patients and families to improve point of care outcomes.

This past spring, the global healthcare tech company launched its cloud-based care platform. “Deployed on Microsoft Azure, this platform enables health systems to quickly adopt technology for engaging patients, reducing non-clinical demands on care teams and optimising clinical and operational effectiveness,” notes a press release.

Oneview has signed a number of contracts for the use of this platform, including with Omaha’s Children’s Hospital and Medical Center, Northern Health in Melbourne and Kingman Regional Medical Center in Arizona. In late November, Oneview raised AU$20 million in a private placement with plans to use the funds to further product development, scale its cloud enterprise and strengthen its balance sheet.

3. Emyria

Market cap: AU$105.86 million; year-to-date gain: 318.48 percent

Emyria (ASX:EMD) is a healthcare technology company that specializes in data-backed drug development and operates a network of medical clinics. Using proprietary clinical evidence, the company develops registered treatments for underserved medical needs.

Emyria’s current drug development programs center on cannabidiol (CBD) medicines for mental health, CBD/THC treatments for irritable bowel syndrome and MDMA treatments for post-traumatic stress disorder.

In late November, one of Australia’s largest private investment groups, Tattarang, made a AU$5 million investment in Emyria, which will help the company further advance its drug development work.

4. PlaySide Studios

Market cap: AU$445.38 million; year-to-date gain: 139.13 percent

PlaySide Studios (ASX:PLY) develops mobile games, virtual reality, augmented reality and PC games. The company’s portfolio consists of 52 titles, including original intellectual property games, as well as games developed with the worlds’ largest studios, such as Disney (NYSE:DIS), Warner Bros and Nickelodeon.

PlaySide Studios is Australia’s largest publicly listed gaming technology company, and following its 2020 initial public offering, it generated revenue of AU$10.88 million for the 2021 fiscal year. In November, the company inked a landmark deal with 2K Games, a label of Take-Two Interactive Software (NASDAQ:TTWO).

In the last weeks of 2021, PlaySide signed a number of deals, including a contract with Shiba Inu Games and a partnership with One True King to co-develop a PC-based game, which will also provide access to One True King's 21 million global followers.

5. Universal Biosensors

Market cap: AU$175.98 million; year-to-date gain: 127.59 percent

Last on this list of best ASX tech stocks is medical device technology company Universal Biosensors (ASX:UBI), which develops, manufactures and commercializes diagnostic testing systems for point-of-care providers and at-home use. It has products for blood glucose monitoring, coagulation testing, immunoassays and molecular diagnostics.

“UBI’s biosensor technology platform has been used to deliver more than 10 billion diagnostic tests to patients worldwide generating billions of dollars in sales,” states a company presentation. “We have licensed and partnered new technology and new biosensors with global applications.”

In November, Universal Biosensors signed a three year master collaboration agreement with Mayo Clinic Biopharma Diagnostics. The deal includes work on Universal Biosensors’ Tn antigen cancer biosensor. In late December, the company entered into a global exclusive license agreement with IQ Science for the commercialization of a SARS-CoV-2 N-protein detection test that will use Universal Biosensors' proprietary electrochemical strip and device technology.

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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Looking for the best-performing cobalt stocks on the ASX? Here's a look at the three top gainers of 2021.

Cobalt prices have soared this past year, with investors paying more attention to this battery metal.

A large reason for cobalt’s bullish behaviour is that it is used to manufacture lithium-ion batteries, which power electric vehicles (EVs) — as demand for EVs continues to rise, it's likely cobalt demand will remain strong too.

Currently the future of EVs looks bright — the market is growing quickly and is expected to boom over the next decade. In the first half of 2021 alone, EV sales ballooned by 160 percent, and by the end of the year, a total of 15 countries had announced measures to begin transitioning toward an all-electric future.


The three top cobalt-producing countries worldwide are the Democratic Republic of Congo, Russia and Australia — the last of which is investing in ramping up its production of the metal.

With that in mind, which Australian cobalt miners gained the most value in 2021? Read on to learn more about the three best cobalt companies on the ASX by year-to-date share price gains. All information was obtained on December 30, 2021, using TradingView's stock screener.

1. Jervois Global

Year-to-date gain: 63.89 percent; current share price: AU$0.59

Jervois Global (ASX:JRV) is best known for its Finland operations, which produce cobalt for chemical, catalyst, pigment, powder metallurgy and — most significantly — battery applications. The company is currently in the process of launching its new Idaho Cobalt Operations (ICO) and is on track to become the first US cobalt miner.

On December 15, Jervois announced an update on ICO, saying first ore is expected in August 2022, with sustainable production expected by December 2022. The estimated capital expenditure required to stay on schedule has risen to US$99.1 million, up from US$92.6 million, with mine engineering 64 percent complete.

2. Cobalt Blue Holdings

Year-to-date gain: 177.78 percent; current share price: AU$0.50

Cobalt Blue Holdings (ASX:COB) is a rare cobalt-only company, and defines itself by its planned ethical and sustainable extraction and production processes. The firm's flagship New South Wales-based Broken Hill project is slated to produce an average of 3,500 to 3,600 tonnes per year of cobalt once in operation.

In December 2021, Cobalt Blue Holdings announced it has executed a memorandum of understanding with the State of Queensland, acting through the Department of Resources, to assess opportunities for the recovery of cobalt (as well as any coexisting base and precious metals) from mine waste.

3. Australian Mines

Year-to-date gain: 31.25 percent; current share price: AU$0.21

Australian Mines (ASX:AUZ) is aiming to supply metals to the growing EV industry, with a focus on ethical and sustainable production. Its flagship Queensland-based Sconi nickel-cobalt project boasts a mine life of over 30 years and will be capable of processing 2 million tonnes of ore annually.

In late October, Australian Mines reported on its quarterly activities, including an agreement for Korea-based LG Energy Solution, a top global producer of EV batteries, to buy 100 percent of the Sconi project’s nickel-cobalt hydroxide output over an initial six year term. The future agreement indicates that LG Energy Solution will buy a projected 7,000 tonnes of cobalt from Australian Mines over the six year period.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Isabel Armiento, hold no direct investment interest in any company mentioned in this article.