Australian cobalt mining company Jervois Mining has entered into an agreement to acquire Canadian rival M2 Cobalt.

Under the pact, Jervois will offer one of its shares for every share in M2 Cobalt, valuing the company at 16.6 million Canadian dollars ($12.5 million).

Jervois revealed that the move will complement its efforts to form a presence in East Africa, as it applied for a prospecting licence in Tanzania.

With the acquisition, Jervois will maintain a listing on the Toronto Venture Exchange and will get access to North American capital markets.