(Reuters) - Australian cobalt developer Jervois Mining on Tuesday said it would buy out Canada-based Ecobalt Solutions Inc, for C$57.6 million ($43.29 million), to expand its geographical footprint into the United States.
As part of the acquisition, each common share of eCobalt will be exchanged for 1.65 common shares of Jervois, representing an implied offer price of C$0.36 per eCobalt share, a near 11-percent premium to the Canadian company’s last close.
The merger gives Jervois Mining access to Ecobalt’s Idaho Cobalt Project - a high grade cobalt deposit located in the U.S. state of Idaho.
Cobalt, which is mined as a by-product of copper and nickel, is all the rage of late as demand for the metal has risen exponentially for use in batteries for electric vehicles, which automakers consider the future of transportation.
Reporting by Nikhil Subba in Bengaluru; Editing by Sandra Maler