The Jervois Global Ltd (ASX: JRV) share price has jumped 5% into the green during Thursday's session.
Shares in the company — formerly Jervois Mining — are on the move after it made an announcement earlier today. They are now exchanging hands at 51 cents apiece, a 5.15% jump on the day.
Let's investigate further.
What did Jervois announce?
In what investors deemed a positive for the Jervois Global share price, the company announced it had completed the "US$160 million acquisition of Freeport Cobalt". It also nabbed four "affiliated entities" as a part of the transaction.
Total transaction costs came in at US$192 million when including working capital, to reflect the "higher cobalt inventory acquired".
The acquisition "aims to consolidate the transformation" of the company into a "global, vertically integrated cobalt and nickel company of scale".
In addition, the acquisition could potentially turn Jervois into the "second-largest producer of refined cobalt outside of China".
To finance the transaction, Jervois completed a month-long "accelerated non-renounceable entitlement offer" on 25 August. There it raised a total of A$313 million when combined with both retail and institutional tranches of the placement.
In addition, Mercuria, "one of the largest energy and commodity traders" as per the release, invested AU$45.7 million according to the company. Australian Super also increased its investment by AU$73.9 million.
What did the company have to say?
In the announcement, Jervois Global said:
Jervois confirms it has closed its previously announced acquisition of 100% of Freeport Cobalt by purchasing all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings Limited. Jervois has purchased an operating global leader in the cobalt industry, with an established market platform that is diversified by product and value chain segment.
Jervois Global share price snapshot
The Jervois Global share price has gained 44% this year to date, and 84% over the past 12 months.
These results have outpaced the S&P/ASX 200 index (ASX: XJO)'s climb of around 25% over the past year.
