Cobalt developer Jervois Mining says it will buy out Canada-based Ecobalt Solutions for $C57.6 million ($A60.9 million) in order 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 36 Canadian cents per eCobalt share, a near 11-per cent 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 US 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.
