Fortune Minerals Ltd FTMDF

Tough times for the JRs

[Jim1712]

Extension of Waivers and ICO Bond Interest Deferral

Jervois Global Limited (“Jervois” or the “Company”) (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) and Holder (defined below) have agreed to (a) extend the current Waiver and Interest Deferral of the Idaho Cobalt Operations (“ICO”) Bonds (as such terms are defined below) to 6 September 2024 and, until implemented, to forbear remedies associated with financial covenant compliance and (b) extend waivers of the financial covenants and collection account balances for the Jervois Finland Working Capital Facility (“JFO Facility”).  

The Holder is both the majority bondholder of the US$100 million 12.5% ICO senior secured bonds (the “ICO Bonds”) and since 26 July 2024, sole lender for the JFO Facility.  

In relation to the ICO Bonds, this extended waiver is in respect of all financial covenants and certain potential cross-defaults (collectively the “Waiver”) and further extension of the ICO Bonds interest deferral with respect to the semi-annual payments (the "Deferral"), to run concurrent with ongoing commercial discussions with the Holder.  

To be implemented, the Waiver and the 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 and the Deferral.  

As previously announced, Jervois is working in conjunction with its providers of both debt and equity capital, and third parties, on potential transactions to strengthen its balance sheet.  

The ICO Bonds were issued by a Jervois United States subsidiary, secured by ICO and guaranteed by Jervois in 2021. Other than the Waiver and the Deferral, there are no changes proposed to terms of the ICO Bonds, including coupon, security or guarantee arrangements.