Agreement Provides Ability To Restart Sao Miguel Paulista Refinery

AUSTRALIA – Jervois Global Limited has reached an agreement with Millstreet Capital Management LLC on a comprehensive proposed recapitalisation that will strengthen the group’s balance sheet and provide US$145 million of new pre- and post-recapitalisation equity capital to fund the business and certain growth initiatives, including underpinning the restart of the São Miguel Paulista (SMP) nickel cobalt refinery in Brazil.  

To effect the proposed recapitalisation in a timely and efficient manner, Jervois and certain of its subsidiaries will commence a prepackaged United States (U.S.) Chapter 11 procedure, expected to commence in January 2025. Throughout the process, the Company is expected to continue operations in the normal course, and anticipates that its vendors, suppliers, customers and employees will remain unaffected by the proposed recapitalisation. Millstreet is expected to implement the recapitalisation in Australia by an interconditional deed of company arrangement in respect of Jervois.

Millstreet’s intended Australian deed of company arrangement proposal will be consistent with the recapitalisation plan under the Chapter 11 Plan, which requires Jervois to dispose of its material assets to a nominee of Millstreet, conditional on creditor approvals required under the Corporations Act 2001 (Cth). As an implementation condition, Jervois would seek Australian Securities Exchange (ASX) approval of its delisting.

Millstreet currently provides the secured Jervois Finland (JFO) Working Capital Facility (“Facility”), is the majority and controlling lender of the 12.5% US$100 million Idaho Cobalt Operations (ICO) Senior Secured Bonds (ICO Bonds) and is the sole holder of the US$25 million convertible notes (CN) issued by the Company.