Extension of Covenant Waiver and Interest Deferral on ICO Senior Secured Bonds
23 July 2024 - TheNewswire (Australia) Jervois Global Ltd. ("Jervois") (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) has agreed with the majority bondholder (the "Holder") of the US$100 million 12.5% Idaho Cobalt Operations ("ICO") senior secured bonds (the "ICO Bonds"), that the Holder will support an extension of the waiver granted on 9 May 2024 in respect of all financial covenants, originally granted until 20 July 2024 to 20 August 2024 and to agree a waiver of certain potential cross-defaults (collectively the "Waiver"). The Holder has also agreed to support a deferral of the interest payment with respect to the ICO Bonds due on 20 July 2024 to 20 August 2024 (the "Deferral"). The ICO Bonds were issued by a Jervois United States subsidiary, secured by ICO and guaranteed by Jervois in 20211.
Until the Waiver and Deferral are implemented, the Holder has also agreed to forbear remedies associated with financial covenant compliance.
To be implemented, the Waiver and 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.
As previously announced, Jervois is working in conjunction with its major lenders on potential transactions to strengthen Jervois' balance sheet.
Other than the Waiver and the Deferral, Jervois has agreed to a certain event of default relating to the termination of a side letter agreement with the Holder. Otherwise, there are no changes proposed to terms of the ICO Bonds, including coupon, security or guarantee arrangements. The ICO Bonds also continue in the ordinary course to be subject to no principal repayment until the end of their existing 5-year term in July 2026.
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 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 Announcement dated 5 July 2021
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