Jervois Mining gets green light to finalise Flemington sale, ends year cashed up
Jervois Mining is set to end the year with up to $10 million in cash and liquid securities to fund new acquisition opportunities and advance Nico Young.
The New South Wales Government has given Jervois Mining (ASX: JRV) the greenlight to finalise the sale of its Flemington project, giving Jervois a nice Christmas bonus and helping it end the year with almost $10 million in cash and liquid securities.
NSW’s Department of Planning and Environment has approved the transfer, which will see Jervois offloading the Flemington exploration licences to Australian Mines (ASX: AUZ).
Once the transfer is complete, Jervois will receive a cash boost of $3.4 million plus GST.
In line with the transfer, Jervois received a 1.5% gross royalty, which it has sold as part of a royalty package to Cobalt 27.
The royalty sale is now expected to wind up before the end of the month, with Jervois to secure $1.5 million in cash and 422,856 shares in Cobalt 27.
As a result, the Flemington and royalty sell off are estimated to leave Jervois with up to $10 million in cash and liquid securities before the end of 2018.
Nico Young and acquisition hunt progress
Jervois will use the funds to advance its Nico Young nickel and cobalt project in NSW and acquisition opportunities.
At Nico Young a pre-feasibility study is underway, and the company is seeking either an investment or off-take partnership to progress the project through to the end of a definitive feasibility study.
To facilitate potential partnerships and investment, Jervois has set up a data room. The project has a current resource of 167.8 million tonnes grading 0.59% nickel and 0.06% cobalt for 996,700t of contained nickel and 96,600t of cobalt.
In mid-November, Jervois reported it had attracted “exceptionally strong” interest in its planned mixed nickel-cobalt hydroxide and nickel and cobalt sulphate products from Nico Young.
Meanwhile, Jervois is also on the hunt for new acquisitions as part of its strategy to diversify its portfolio.
“New business opportunities continue to advance and shareholders will be updated when finalised,” the company stated.