Three of Jervois Mining’s (ASX: JRV) directors have put their own cash behind the company – scooping up a combined 11.1 million shares worth $2.2 million under the recent capital raising.
The company revealed at the end of June it had secured $16.5 million in an oversubscribed equity raising – up from the initial $15 million target.
Under the raising, Jervois issued 82.5 million shares at $0.20 each.
After securing shareholder approvals, partaking in the placement was non-executive director Brian Kennedy, who took up 7.1 million shares in Jervois for a total of $1.42 million.
Upon completion of his buy up, Mr Kennedy now holds 7.245 million ordinary shares in Jervois, as well as 2.5 million options exercisable at $0.15 by 30 November 2022.
Jervois chief executive officer Bryce Crocker bought up 1.5 million shares in the company for $300,000.
Mr Crocker now owns 2.05 million shares in Jervois in addition to 10 million options exercisable at $0.15 by November 2022 and a further 5 million options exercisable at 0.29 by 30 September 2023.
Not to be left behind, Jervois non-executive chairman Peter Johnston also expanded his stake in the company.
Via the placement, Mr Johnston purchased 2.5 million shares for $500,000. He now holds 2.75 million ordinary Jervois shares and 7.5 million options exercisable at $0.295 by 1 July 2023.
Advancing Idaho cobalt operations
News of the director buy-up follows Jervois’ completed merger with eCobalt Solutions.
The newly combined company is now the world’s third largest cobalt play possessing a suite of quality cobalt, nickel and copper assets across the US, east Africa and Australia.
With the merger complete and $16.5 million in cash, Jervois said it would “aggressively” pursue its Idaho cobalt operations (formerly Idaho cobalt project) in the US, which the company believes represents its best opportunity to fast-track its transition from explorer to miner.
To-date, US$100 million has been invested in the asset including plant and infrastructure. Additionally, the environmental permitting process has been completed.
Jervois plans to carry out an updated feasibility study for the asset as well as a refinery scoping study, with both due to be completed by the end of the March quarter.
The company anticipates a 12-month construction period and is targeting commercial production of cobalt concentrate in the second half of 2021.