eCobalt merger goes to shareholders

Shareholders will vote Friday on an eCobalt plan to merge with Australia-based Jervois Mining Limited.

The Vancouver, British Columbia-based company said it was taking action after dealing with ongoing volatility in the price for cobalt.

A friendly merger was announced in April. Under it, Jervois acquired all the issued and outstanding shares of eCobalt that it does not already own.

The Idaho Cobalt Project (ICP), which includes a central Idaho mining operation near Salmon, is a key part of the transaction.

The companies describe the ICP as the highest combination of cobalt grade and scale in the United States. It is the only near-term, environmentally permitted cobalt project in the United States.

The Salmon mining operation stopped in February when cobalt prices fell under expected levels. That also put a proposed Blackfoot production facility on hold until a “more favorable price environment returns.”

Cobalt prices fell more than 50% since mid 2018 due to excess production in the Republic of the Congo and refined supply from China, according to eCobalt.

The New Jervois merger would manage operations in Australia, East Africa and the US project pipeline, which includes the Idaho Cobalt Project.

According to company documents, eCobalt has invested over $135 million into the Idaho project to date.