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Sprott est dans le stock ... ééé
Trevali Arranges $10-Million Bridge Credit Facility
10:30:47 EDT08/15/2012
VANCOUVER, BRITISH COLUMBIA, Aug 15, 2012 (MARKETWIRE via COMTEX News Network) -- Trevali Mining Corporation ("Trevali" or the "Company") (TSX:
TV)(TSX: TV.WT)(OTCQX: TREVF)(LMA: TV)(FRANKFURT: 4TI) announces that
it has entered into $10-million bridge-loan credit facility agreement
with Sprott Resource Lending Partnership ("Sprott").
Proceeds of the facility will be applied towards ongoing underground
development of the Halfmile Mine and upgrades/reactivation of the
Caribou Mill facility (subject to the formal closing of Trevali's
planned acquisition of Maple Minerals Corp.) in New Brunswick, and
for general working capital purposes.
The facility is for a principal amount of $10 million at an interest
rate 11 per cent per annum, compounded and payable monthly, and due
and payable in full on or before August 31, 2013. In consideration of
the facility, Trevali has made a share bonus payment of $250,000,
being 2.5 per cent of the principal amount of the facility, payable
in 329,472 common shares of the Company priced at $0.759 per share (a
10 per cent discount to the 5-day volume weighted average trading
price immediately prior to the date of the term sheet signed in
connection with the facility). The bonus shares will be subject to a
hold period of four months and one day from today's date. A
structuring fee in the amount of $100,000 has also been paid to
Sprott.
Trevali continues to advance progress on securing a senior,
corporate-level debt facility in order to support the Caribou Mill
re-start where the Company plans to add a copper circuit and modify
the mill so that it can process feed from all three of its deposits
in the Bathurst Mining Camp, specifically Halfmile, Stratmat and
Caribou (subject to the formal closing of its planned acquisition).
Seven financial institutions and end-users have signed
Confidentiality Agreements and due diligence is well advanced. The
Company hopes to be in a position to announce implementation of a
senior debt facility in late summer.
It is anticipated that upon completion of a senior-debt facility that
Trevali will extinguish this bridge credit facility.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals producer with operations in
Canada and Peru - the Halfmile and Santander mines respectively. In
Canada, Trevali owns the Halfmile zinc-lead-silver mine and Stratmat
polymetallic deposit, and has entered into a definitive agreement to
acquire the Caribou Mine and Mill, all located in the Bathurst Mining
Camp of northern New Brunswick. The Company also has the
past-producing Ruttan copper-zinc mine in northern Manitoba. Initial
production from the Halfmile mine commenced in early 2012 and
development is ramping up to achieve a planned production rate of
approximately 3,000-tonnes-per-day to feed planned operations at the
Company's Caribou Mill Complex (subject to closure of its
acquisition).
In Peru, the Company has the Santander zinc-lead-silver mine 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 late-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 anticipated use of proceeds, the
incurring of expenses that qualify as "flow-through mining
expenditures," 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 or Direct: (604) 638-5623 sstakiw@trevali.com www.trevali.com
SOURCE: Trevali Mining Corporation
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