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 finalized all the legal documentation and
has closed the $30-million of funding associated with its
previously announced $60-million senior debt and prepaid precious
metals facility ("Facility") with RMB Resources ("RMB"), the
resource financing division of the FirstRand Group of South Africa.
The debt facility will be used to repay current debt, fund
development towards stand-alone mine and mill operations in the
Bathurst Camp of New Brunswick, and for general corporate working
capital purposes.
This mezzanine-tranche of the facility is repayable on the
earlier of June 30, 2014, or closing of the final $60-million
senior debt facility. The facility bears interest of LIBOR + 8.5%
per annum and has an arrangement fee of 5% and 3,000,000 warrants
to purchase Trevali common shares on the TSX exercisable at any
time through June 30, 2015 at an exercise price of $1.05 per share,
subject to TSX approval.
It is anticipated that the $60-million senior debt and prepaid
precious metals facility will be approved subject to the receipt of
positive ongoing technical studies relating to the commencement of
production in New Brunswick.
With the closing of the initial funding facility now in place,
Trevali will commence its reactivation program and associated
studies in the Bathurst Mining Camp of New Brunswick aimed at
recommencing operations at the Caribou Mill and Mine complex and at
the Halfmile Mine in 2014. The Company has commenced hiring key
technical personnel and will initiate orders on key, long-lead-term
components for the mill - specifically the SAG mill in the coming
week.
"Given the challenging commodity and equity markets, we are very
happy to close this initial $30-million funding from RMB and start
the reactivation program on our New Brunswick production projects,"
stated Dr. Mark Cruise, Trevali's President and CEO. "This facility
from RMB reflects their confidence in the Company's management
team, zinc fundamentals and our production and growth plans going
forward from our operations both in Peru and Canada."
ABOUT RMB RESOURCES
RMB Resources is the resource financing division of the
FirstRand Group, which is listed on the Johannesburg Stock Exchange
(FSR: SJ) and is one of South Africa's largest financial
institutions. RMB specializes in providing equity- and
debt-financing solutions for small to mid-tier resource companies
globally. RMB Resources provides debt funding through conventional
project financing, commodity pre-paid forward financing as well as
senior, subordinated, standby and bridge financing. Staffed with
experienced mining executives, RMB Resources operates from its
offices in Sydney, Melbourne, London, Denver and New York.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals development company with
active operations in Canada and Peru.
In Peru, the Company is nearing production at its Santander
zinc-lead-silver mine where commissioning is expected soon and
subsequent ramp up to the planned 2,000-tonnes-per-day production
is anticipated by mid-year 2013.
In Canada, Trevali owns the Caribou mine and mill, Halfmile mine
and Stratmat polymetallic deposit all located in the Bathurst
Mining Camp of northern New Brunswick. Initial trial production
from the Halfmile underground mine was successfully undertaken in
2012 and the Company anticipates commencing operations at its
3,000-tonne-per-day Caribou Mill Complex in early-2014.
All of the Company's deposits remain open for expansion.
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 Caribou-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, Vice
President, Investor Relations and Corporate Communications (604)
488-1661 / Direct: (604) 638-5623 (604) 408-7499
(FAX)sstakiw@trevali.com www.trevali.com
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