Jervois Mining’s (ASX: JRV) upcoming merger with TSXV-listed M2 Cobalt is progressing on schedule, with the pair preparing to kick off an exploration program in Uganda after commencing field mobilisation.
Melbourne-based Jervois launched a friendly merger with the M2 Cobalt back in January, giving the company a “transformational” foothold in Uganda through the historical Kilembe copper-gold mine.
With the merger progressing as planned, M2 Cobalt has officially launched its work program for 2019, which will include up to 6,000 metres of additional drilling as the two companies combine resources.
The work program will expand on M2 Cobalt’s current work to date and will include both diamond and reverse circulation drilling.
The drill program will expand work undertaken at the Waragi and Nile targets, with up to 3,000m of drilling planned to systematically test the large regional cobalt/copper geochemical anomaly discovered across the Buajagli licenses in southern Uganda during 2018.
The company also plans to launch additional ground geophysics and rock grab and soil sampling across its exploration licences.
M2 Cobalt chief executive officer Simon Clarke said the company was pleased to be launching the next phase of its exploration campaign.
“We have a very large asset base with numerous large-scale targets and significant potential for new discoveries,” he said.
“We are also extremely pleased to be able to add the technical and financial resources of Jervois as we move through the merger process and combine operations.”
Merger on track
On the upcoming merger, M2 Cobalt said it had received support for the deal from shareholders representing just over 50% of the company.
It expects to receive formal shareholder approval for the tie-up via a vote in early to mid-May 2019.
Under the definitive agreement signed in January, the two companies will merge via an all-market transaction whereby each common share of M2 Cobalt will be exchanged for one common share of Jervois.
As part of the deal, M2 Cobalt said it had also satisfied all outstanding conditions for the drawdown of the US$3 million working capital facility from Jervois.
The funds are set to be used for the continuation and expansion of its initial drill program and the next phase of exploration.
The planned merger with M2 Cobalt came after Jervois undertook a global search effort for attractive investment opportunities.
“Jervois has reviewed a significant number of investment opportunities in cobalt globally and is enthusiastic regarding the exploration potential of M2 Cobalt’s portfolio of tenements,” the company stated in January.
In addition to the exploration upside, Jervois’s foray into Uganda is set to complement its discussions with the Government of Tanzania to win the giant Kabanga nickel-cobalt deposit.