Trevali Mining Announces $20 Million Bought Deal Financing

Resource Investing News

Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) announced a bought-deal private placement for gross proceeds of approximately $20 million. The company has entered an agreement with Dundee Securities to purchase 19,610,000 shares of the company at $1.02 per share by way of a short form prospectus.

Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) announced a bought-deal private placement for gross proceeds of approximately $20 million. The company has entered an agreement with Dundee Securities to purchase 19,610,000 shares of the company at $1.02 per share by way of a short form prospectus.

As quoted in the press release:

The Underwriters have been granted an option to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 30 days after the closing of the Offering (the “Option”).

The Offering is scheduled to close on or about June 11, 2015. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
The net proceeds of the Offering will be used to accelerate the ramp-up process and expedite optimization initiatives at the Company’s Caribou Zinc mine during commissioning, and for working capital and general corporate purposes.

The Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, excluding Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions.

Trevali also announced an updated resource estimate for its Stratmat deposit in New Brunswick on Wednesday: Indicated resource of 4.7 million tonnes grading 5.31% zinc, 2.07% lead, 0.41% copper, 48.52 g/t silver and 0.59 g/t gold, and an Inferred resource of 2.40 million tonnes grading 4.76% zinc, 2.07% lead, 0.70% copper, 38.82 g/t silver and 0.42 g/t gold; using a 5% ZnEq cutoff.

As quoted in the press release:

Mineral resources were estimated by Dr. Gilles Arseneau, P. Geo. of SRK Consulting (Canada), Inc. an appropriate “independent qualified persons” as this term is defined in National Instrument 43-101. Dassault Systemes Geovia Gems® version 6.6 (Gems) software was used to review and modify the geological solids provided by Trevali, prepare assay data for geostatistical analysis, construct the block model, estimate metal grades and tabulate mineral resources. The Geostatistical Software SAGE2001was used for geostatistical analysis and variography.

The mineral resource incorporates the results of 339 core boreholes both historical and those drilled by Trevali. The original assay data was composited to 1.5-metre lengths, and then outliers were appropriately capped. Robust variography of the composited and capped data was possible for the Main and S1 Zones, where Ordinary Kriging was used to estimate resources. In the cases of the New, S0, and S5 Zones, variography was inconclusive; and Inverse Distance Squared was used to estimate mineral resources.

A density weighting factor was applied to the S0 and S1 Zones where sufficient data exists to support such weighting. The Main, New, and S5 Zones are not density weighted due to insufficient data.

Mineral resources were estimated into 5-by-5-by-5-metre blocks in multiple passes with successive passes only interpolating a block if it had not been estimated by a previous pass. Blocks were only estimated if at least two drill holes and 3 composites were found during passes one and two. A maximum of 12 composites were used to estimate a block grade. Pass one used a narrow search ellipse based on variography, and pass two used a wider search. During pass three, blocks that had at least two composites within the search ellipse were interpolated. Blocks interpolated during the first pass are categorized as indicated, and blocks interpolated during subsequent passes are categorized as inferred.

A detailed NI 43-101 report will be lodged on SEDAR and the Company’s website within 45-days.

Click here to read the Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) press release
Click here to see the Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) profile.

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