Advertisement
Canada markets close in 4 hours 14 minutes
  • S&P/TSX

    22,182.54
    +75.46 (+0.34%)
     
  • S&P 500

    5,252.21
    +3.72 (+0.07%)
     
  • DOW

    39,770.41
    +10.33 (+0.03%)
     
  • CAD/USD

    0.7388
    +0.0015 (+0.21%)
     
  • CRUDE OIL

    82.48
    +1.13 (+1.39%)
     
  • Bitcoin CAD

    96,408.20
    +2,865.91 (+3.06%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,234.60
    +21.90 (+0.99%)
     
  • RUSSELL 2000

    2,130.69
    +16.34 (+0.77%)
     
  • 10-Yr Bond

    4.1910
    -0.0050 (-0.12%)
     
  • NASDAQ

    16,391.44
    -8.09 (-0.05%)
     
  • VOLATILITY

    12.95
    +0.17 (+1.33%)
     
  • FTSE

    7,966.31
    +34.33 (+0.43%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6836
    +0.0031 (+0.46%)
     

Jervois Mining takes over Canada's Ecobalt, shares jump

MELBOURNE (Reuters) - Australian cobalt developer Jervois Mining <JRV.AX> will take over eCobalt Solutions <ECS.TO> after shareholders of the Canadian company voted in favor of the deal, Jervois said on Monday.

Jervois will acquire eCobalt in a plan of arrangement that values the deal at C$57.6 million ($44.1 million), and will become the owner of the Idaho Cobalt Project, North America's major cobalt project.

Shares in Jervois climbed as much as 21 percent on Monday to $A0.23. Jervois announced the proposed takeover in April.

The battery minerals developer has been on a buying spree to build itself into a supplier of materials outside of China, which dominates the electric vehicle supply chain. It closed a deal to buy M2 Cobalt Corp, which has operations in Uganda, in June.

ADVERTISEMENT

Prices for cobalt, a key material used in electric vehicle batteries, have collapsed by 70 percent to around $28,000 a ton over the past year due to a rising tide of supply from the Democratic Republic of Congo. [CCBD3]

However, concerns of unsafe work practices and child labor in the Congo have burnished the allure of sources of the raw material from elsewhere.

(Reporting by Melanie Burton; editing by Richard Pullin)