😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Jervois Mining takes over Canada's Ecobalt, shares jump

Published 2019-07-21, 10:41 p/m
© Reuters.  Jervois Mining takes over Canada's Ecobalt, shares jump

MELBOURNE, July 22 (Reuters) - Australian cobalt developer Jervois Mining JRV.AX will take over eCobalt Solutions ECS.TO after shareholders of the Canadian company voted in favour of the deal, Jervois said on Monday.

Jervois will acquire eCobalt in a plan of arrangement that values the deal at C$57.6 million ($44.1 million), and will become the owner of the Idaho Cobalt Project, North America's major cobalt project.

Shares in Jervois climbed as much as 21 percent on Monday to $A0.23. Jervois announced the proposed takeover in April.

The battery minerals developer has been on a buying spree to build itself into a supplier of materials outside of China, which dominates the electric vehicle supply chain. It closed a deal to buy M2 Cobalt Corp, which has operations in Uganda, in June.

Prices for cobalt, a key material used in electric vehicle batteries, have collapsed by 70 percent to around $28,000 a tonne over the past year due to a rising tide of supply from the Democratic Republic of Congo. CCBD3

However, concerns of unsafe work practices and child labour in the Congo have burnished the allure of sources of the raw material from elsewhere.

($1 = 1.3064 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.