Trevali Mining Corp. has announced its acquisition of a portfolio of zinc assets, previously belonging to Glencore PLC.
This agreement also comes with certain subsidiaries as well, including an 80% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39% interest in the Gergarub project in Namibia. This agreement also has an option to acquire 100% interest in the Heath Steele project in Canada including certain related exploration properties and assets.
This ambitious acquisition was funded through a combination of multiple elements, firstly being through a previously announced bought private deal, as well as a US$160 million loan that would be secured short term which was made available to the Company by The Bank of Nova Scotia and SG Americas Securities LLC, as co-lead arrangers and joint bookrunners, and The Bank of Nova Scotia, Société Générale, Export Development Canada, HSBC Bank Canada and The Toronto-Dominion Bank, as lenders. In addition to funding a portion of the Cash Consideration, a portion of the Term Facility was used to refinance debt obligations of Trevali’s wholly-owned subsidiary, Trevali Peru S.A., owing to Glencore and its affiliates.
As part of the agreement between the two firms, a total of 220 455 000 subscription receipts were issued, for gross proceeds of CAN$264 546 000. CAN$53.91 million of which was used to redeem Trevali’s 12.5% senior secured notes due May 30, 2019 in full. The Subscription Receipts were distributed by way of a private placement in each of the provinces and territories of Canada, in the United States pursuant to applicable exemptions, and in certain international jurisdictions pursuant to the Subscription Receipt Offering. As of August 31, 2017, the escrow release conditions for the Subscription Receipt Offering have been satisfied and the Subscription Receipts will convert into 220,455,000 Common Shares with no further action on the part of the holders of the Subscription Receipts.
“We are very pleased to finalize our acquisition of the Rosh Pinah and Perkoa zinc mines, which marks a truly transformational event for Trevali shareholders by establishing the Company as a multi-asset, top-10 global zinc producer,” stated Dr. Mark Cruise, President and Chief Executive Officer of Trevali. “These assets complement our successful Santander and Caribou mines and provide significant upside to shareholders in this strengthening macro-zinc environment through scale of production as well as an attractive package of exploration ground. All of the deposits remain open for expansion and active resource expansion programs are in progress. Additionally, we welcome Glencore as a key strategic shareholder in Trevali, expanding on the strong, proven business relationship we’ve enjoyed since 2010 at our Santander operation.”
Glencore has agreed to a 36-month standstill and to hold the share consideration for a period of at least 24 months following the closing of the Transaction. The standstill prohibits Glencore from taking certain specified actions without Trevali’s approval, including, among other things, launching a takeover bid or increasing its ownership in Travail.
Read the article online at: https://www.globalminingreview.com/finance-business/07092017/trevali-announces-closing-of-acquisition-of-the-rosh-pinah-and-perkoa-zinc-mines-and-us190-million-debt-facility/