Trevali Mining Corporation ("Trevali" or the "Company")
(TSX:TV)(TSX:TV.WT)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) is pleased
to announce that it has entered into a subscription agreement with
a wholly-owned subsidiary of Glencore International Plc
("Glencore"), to sell by way of non-brokered private placement (the
"Private Placement") 12,620,282 common shares in the capital of the
Company (the "Common Shares") at CAD$1.42 (US$1.4263) per share for
total proceeds of US$18 million.
The funds will be utilized to rapidly advance the Company's
Santander Mine project in Peru and to provide working capital
facilities for the new Halfmile Mine in New Brunswick that is
presently under production ramp-up. The Private Placement is
subject to customary closing conditions and the approval of the
Toronto Stock Exchange.
On closing of the Private Placement, Mr. Chris Eskdale of
Glencore will join Trevali's Board. A UK chartered accountant, Mr.
Eskdale received his MA from Oxford University, England and has
been a core member of Glencore's Metals and Minerals Business Group
for in excess of 15 years where amongst his other roles he manages
mining investments in the zinc-copper sector.
"We are very pleased to see Glencore provide a ringing
endorsement of our two mining operations (including a robust
advanced project pipeline) in addition to our experienced
management and operations teams," stated Dr. Mark Cruise, President
and CEO of Trevali Mining Corporation. "I am very pleased that
Chris has accepted the invitation to join our Board - his in-depth
knowledge of the zinc industry will be an invaluable asset as the
Company continues its transition from mine developer to zinc
producer in 2012."
Mr. Daniel Mate, joint head of Glencore's Zinc-Copper Division
added: "Having started out with a partnership with Trevali on the
Santander project alone, we are excited at the prospect of
contributing to the development of Trevali as a whole."
Immediately following the closing of the Private Placement,
Glencore will directly own 12,620,282 Common Shares representing
approximately 7.8% of the issued and outstanding Common Shares.
Glencore also holds a $2-million convertible debenture facility
(the "Facility") from Trevali. The outstanding indebtedness under
the Facility becomes convertible in September 2012 at the 30-day
volume weighted average trading price ("VWAP") of the Common Shares
on the Toronto Stock Exchange with a minimum conversion price of
C$0.64 per share. Assuming that the Facility was converted today,
the 30-day VWAP of $1.26 per Common Share as of February 28, 2012
would result in the issuance of 1,659,714 Common Shares, together
with Glencore's other holdings would represent approximately 8.8%
of the issued and outstanding Common Shares on a partially diluted
basis.
Further, an associate of Glencore owns Common Shares and Common
Share purchase warrants which together with Glencore's holdings
would represent approximately 12.45% of the Common Shares on a
partially diluted basis.
Glencore agreed to the Private Placement in the ordinary course
of Glencore's business. Glencore may from time to time acquire
additional securities of Trevali, dispose of some or all of the
existing or additional securities it holds or will hold, or may
continue to hold its then current position.
Upon closing of the Private Placement, Glencore will acquire the
securities from Trevali pursuant to applicable exemptions from the
prospectus requirements and will receive legal opinions to that
effect from legal counsel to Trevali. Further, the securities being
issued to Glencore will contain a four month and one day resale
restriction. A copy of this early warning report can be obtained
from www.sedar.com or by contacting Glencore's representative
listed below.
About Glencore
Glencore is one of the world's leading integrated commodities
producer and marketer listed on the London and Hong Kong Stock
Exchanges, and is active in 40 countries with more than 50,000
people employed directly and indirectly.
ABOUT TREVALI MINING CORPORATION
Trevali has two advanced-stage polymetallic
(zinc-lead-silver-copper) deposits in Canada and Peru - the
Halfmile and Santander mine projects respectively. In Canada,
Trevali owns the Halfmile Mine and Stratmat polymetallic deposit in
the Bathurst Mining Camp of northern New Brunswick, and the
past-producing Ruttan copper-zinc mine in northern Manitoba.
Production from the Halfmile Mine commenced in early 2012 and will
ramp up to a planned production rate of 2,000-tonnes-per-day.
In Peru, the Company has the Santander zinc-lead-silver mine
project and the former-producing Huampar silver mine, both located
in the Central Peruvian Polymetallic Belt. Mine commissioning is
anticipated to commence at the Santander operation in mid-2012 with
ramp up to full 2,000-tonnes-per-day production to follow shortly
thereafter. Additionally through its wholly-owned subsidiary,
Trevali Renewable Energy Inc., Trevali is undertaking a significant
upgrade of its wholly-owned Tingo run-of-river hydroelectric
generating facility along with transmission line upgrades and
extensions to allow, in addition to supplying power to the mining
operation on the property, the potential sale of surplus power into
the Peruvian National Energy Grid.
The common shares of Trevali are listed on the TSX (symbol TV),
the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol
TV). Warrants to purchase common shares of Trevali are listed on
the TSX (symbol TV.WT). For further details on Trevali, readers are
referred to the Company's web site (www.trevali.com) and to
Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of TREVALI MINING
CORPORATION
Mark D. Cruise, President
This news release contains "forward-looking statements" within
the meaning of the United States private securities litigation
reform act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation. Statements
containing forward-looking information express, as at the date of
this news release, the Company's plans, estimates, forecasts,
projections, expectations, or beliefs as to future events or
results and the company does not intend, and does not assume any
obligation to, update such statements containing the
forward-looking information. Such forward-looking statements and
information include, but are not limited to statements as to: the
accuracy of estimated mineral reserves and resources, anticipated
results of future exploration, and forecast future metal prices,
anticipated results of future electrical sales and expectations
that environmental, permitting, legal, title, taxation,
socio-economic, political, marketing or other issues will not
materially affect estimates of mineral reserves. These statements
reflect the Company's current views with respect to future events
and are necessarily based upon a number of assumptions and
estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies.
These statements reflect the Company's current views with
respect to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies.
Many factors, both known and unknown, could cause actual results,
performance or achievements to be materially different from the
results, performance or achievements that are or may be expressed
or implied by such forward-looking statements contained in this
news release and the company has made assumptions and estimates
based on or related to many of these factors. Such factors include,
without limitation: fluctuations in spot and forward markets for
silver, zinc, base metals and certain other commodities (such as
natural gas, fuel oil and electricity); fluctuations in currency
markets (such as the Peruvian sol versus the U.S. dollar); risks
related to the technological and operational nature of the
Company's business; changes in national and local government,
legislation, taxation, controls or regulations and political or
economic developments in Canada, the United States, Peru or other
countries where the Company may carry on business in the future;
risks and hazards associated with the business of mineral
exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological or
structural formations, pressures, cave-ins and flooding); risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business; inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards; employee relations; relationships
with and claims by local communities and indigenous populations;
availability and increasing costs associated with mining inputs and
labour;
the speculative nature of mineral exploration and development,
including the risks of obtaining necessary licenses and permits and
the presence of laws and regulations that may impose restrictions
on mining,; diminishing quantities or grades of mineral reserves as
properties are mined; global financial conditions; business
opportunities that may be presented to, or pursued by, the Company;
the Company's ability to complete and successfully integrate
acquisitions and to mitigate other business combination risks;
challenges to, or difficulty in maintaining, the Company's title to
properties and continued ownership thereof; the actual results of
current exploration activities, conclusions of economic
evaluations, and changes in project parameters to deal with
unanticipated economic or other factors; increased competition in
the mining industry for properties, equipment, qualified personnel,
and their costs. Investors are cautioned against attributing undue
certainty or reliance on forward-looking statements. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements
or information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements or
information, other than as required by applicable law.
Trevali's production plans at Halfmile-Stratmat and Santander
are based only on Indicated and Inferred Mineral Resources and not
Mineral Reserves and do not have demonstrated economic viability.
Inferred Mineral Resources are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves, and
there is therefore no certainty that the conclusions of the
production plans and Preliminary Economic Assessment (PEA) will be
realized. Additionally where Trevali discusses
exploration/expansion potential, any potential quantity and grade
is conceptual in nature and there has been insufficient exploration
to define a mineral resource and it is uncertain if further
exploration will result in the target being delineated as a mineral
resource.
The TSX has not approved or disapproved of the contents of this
news release.
Contacts: Trevali Mining Corporation Steve Stakiw Manager -
Corporate Communications (604) 488-1661 / Direct: (604) 638-5623
(604) 408-7499 (FAX)sstakiw@trevali.com www.trevali.com Glencore
International Plc Paul Smith Investors +41 (0)41 709 2487 or m: +41
(0)79 947 1348paul.smith@glencore.com Glencore International Plc
Simon Buerk Media +41 (0)41 709 2679 or m: +41 (0)79 955
5384simon.buerk@glencore.com Glencore International Plc Charles
Watenphul Media +41 (0) 41 709 2462 or m: +41 (0) 79 904 33
20charles.watenphul@glencore.com Finsbury Guy Lamming or Dorothy
Burwell Media +44 (0)20 7251 3801
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