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Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) has closed its previously announced bought-deal offering for proceeds of $30.6 million. Proceeds will be used to accelerate the ramp up process and optimization initiatives at Trevali’s Caribou zinc mine.
Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) has closed its previously announced bought-deal offering for proceeds of $30.6 million. Proceeds will be used to accelerate the ramp up process and optimization initiatives at Trevali’s Caribou zinc mine.
As quoted in the press release:
The Shares were offered pursuant to a short form prospectus dated June 3, 2015 (the “Prospectus”), and were underwritten by a syndicate of underwriters led by Dundee Securities Ltd. and including Raymond James Ltd., GMP Securities L.P., Scotia Capital Inc., Haywood Securities Inc., M Partners Inc., Mackie Research Capital Corporation and Paradigm Capital Inc. (collectively, the “Underwriters”).
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 date hereof.
Trevali intends to use the net proceeds of the Offering to accelerate the ramp-up process and expedite optimization initiatives at the Company’s Caribou Zinc Mine in New Brunswick during commissioning, and for working capital and general corporate purposes, as more fully described in the Prospectus.
The company also recently announced plans for an updated Preliminary Economic Assessment for its Halfmile-Stratmat project in New Brunswick:
Since the original PEA was prepared in 2009, additional information from the Stratmat property is available and the resource sector outlook has also evolved since that time. Therefore, management considers many of the technical inputs and background parameters and assumptions in the existing PEA outdated and inaccurate.
The updated PEA will incorporate the new independent Stratmat resource estimate from SRK Consulting (Canada) Inc. (“SRK”) (see news release TV-NR-15-11, May 20, 2015) as well as additional work programs including geotechnical analysis and metallurgical test work, revised commodity price forecasts, fuel, labour, foreign exchange rates and contractor rates and availability. It will also enable Trevali to utilize hard costs and technical data from its nearby Caribou Zinc mine operation where commissioning has recently commenced (Figure 1).
While the Company intends to advance the PEA for Halfmile-Stratmat, its primary focus remains on its two material projects, namely the Caribou Zinc Mine in New Brunswick, where commissioning is progressing according to schedule, and its Santander Zinc Mine in Peru that is in commercial operation.
A NI 43-101 report of the SRK Stratmat Resource Estimate will be lodged on SEDAR and the Company’s website in due course. As stated above, this report will not carry forward the 2009 Halfmile-Stratmat PEA report.
Click here to read the Trevali Mining (TSX:TV,OTCQX:TREVF,FWB:4TI) press release
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