Jervois Global Ltd. Extension of Waivers and ICO Bond Interest Deferral
Jervois Global Ltd. ("Jervois") (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) and Holder (defined below) have agreed to (a) extend the current Waiver and Interest Deferral of the Idaho Cobalt Operations ("ICO") Bonds1 (as such terms are defined below) to 6 September 2024 and, until implemented, to forbear remedies associated with financial covenant compliance and (b) extend waivers of the financial covenants and collection account balances for the Jervois Finland Working Capital Facility ("JFO Facility"). The Holder is both the majority bondholder of the US$100 million 12.5% ICO senior secured bonds (the "ICO Bonds") and since 26 July 20242, sole lender for the JFO Facility.
In relation to the ICO Bonds, this extended waiver is in respect of all financial covenants and certain potential cross-defaults (collectively the "Waiver") and further extension of the ICO Bonds interest deferral with respect to the semi-annual payments (the "Deferral"), to run concurrent with ongoing commercial discussions with the Holder.
To be implemented, the Waiver and the Deferral required approval of at least 2/3 of the principal amount of the ICO Bonds. The necessary written resolution of the ICO bondholders has been passed as the Holder has voted its more than 2/3 of the principal amount of the ICO Bonds to approve the Waiver and the Deferral.
As previously announced, Jervois is working in conjunction with its providers of both debt and equity capital, and third parties, on potential transactions to strengthen its balance sheet.
The ICO Bonds were issued by a Jervois United States subsidiary, secured by ICO and guaranteed by Jervois in 20213. Other than the Waiver and the Deferral, there are no changes proposed to terms of the ICO Bonds, including coupon, security or guarantee arrangements.
On behalf of Jervois Global Limited
Bryce Crocker, CEO
For further information, please contact:
| Investors and analysts: Alicia Brown Group Manager - External Affairs Jervois Global alicia.brown@jervoisglobal.com | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
Forward-Looking Statements
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule", "expected" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the approval of the Waiver by ICO Bondholders, the strengthening of the balance sheet and certain other factors or information. Such statements represent Jervois' current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Jervois, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Jervois does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 See JRV ASX Announcements dated 9 May 2024, 22 July 2024, 21 August 2024
2 See JRV ASX Announcement "Transfer of Jervois Finland Working Capital Facility" dated 26 July 2024
3 See JRV ASX Announcement dated 5 July 2021
