The transaction follows Jervois’s earlier takeover of M2 Cobalt Corp, an East African-focused exploration company with assets in Uganda.
Shares of Jervois jumped 18.2% in Wednesday morning trading in Toronto, to C$0.20.
READ: M2 Cobalt and Jervois Mining complete merger, creating a significant East African mineral company
Vancouver-based M2 Cobalt announced in April that it planned to merge with Jervois and, subsequently, eCobalt Solutions.
The expanded company has projects in Australia, East Africa and the US, including eCobalt’s Idaho Cobalt project, which boasts the highest combination of cobalt grade and scale in North America.
The acquisition of M2 Cobalt gave Jervois an entry into Uganda, complementing its East African strategy looking at opportunities around the historic Kilembe mine and Kasese cobalt refinery.
Jervois closed the merger with eCobalt after receiving both eCobalt and Jervois shareholder approvals this week, as well as final approval from the British Columbia Supreme Court.
Under the terms of the agreement, Jervois will acquire the issued and outstanding shares of eCobalt that it had not previously owned. eCobalt has just over 166 million shares outstanding.
In exchange, shareholders in eCobalt will receive 1.65 ordinary shares of Jervois for each eCobalt share held.
eCobalt’s shares are expected to be delisted from the Toronto Stock Exchange on Wednesday, while Jervois will aim to relist its shares issued to former eCobalt shareholders on the TSX Venture Exchange, the company reported.
Jervois has also applied to list on the OTCQX board in the US.
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