Jervois Global announces modifications to Finland working capital facility

Jervois Global Limited (ASX:JRV) has announced modifications to the Jervois Finland Working Capital Facility, including an increase in available drawdown headroom and the addition of a US$7.5 million delayed draw term loan for general corporate and working capital purposes. The modifications were agreed upon by the majority bondholder of the US$100 million 12.5% Idaho Cobalt Operations senior secured bonds and lender under the Jervois Finland Working Capital Facility.

Executive commentary on the modifications

The modifications to the Jervois Finland Working Capital Facility, including the increase in available drawdown headroom and the addition of a US$7.5 million delayed draw term loan, provide Jervois with the necessary support to continue its work with debt and equity capital providers, as well as third parties, on potential transactions to strengthen its balance sheet. These amendments demonstrate the ongoing commitment to securing the financial stability and flexibility required to pursue strategic initiatives and enhance shareholder value.

Summary of the modifications and outlook

The modifications to the Jervois Finland Working Capital Facility, along with the addition of the US$7.5 million delayed draw term loan, reflect Jervois' proactive approach to managing its financial resources and pursuing opportunities for balance sheet optimization. The Company's ability to secure these amendments underscores its dedication to fortifying its position in the market and exploring potential recapitalization avenues. With a current cash balance of US$10.5 million and drawn senior debt of US$144.1 million, Jervois remains focused on leveraging these adjustments to drive sustainable growth and value creation.