Glencore International Closes Non-Brokered Private Placement of US$18-Million with Trevali

Trevali Mining Corporation (TSX:TV,OTCQX:TREVF,FWB:4TI) is now in a subscription agreement with a wholly-owned subsidiary of Glencore International Plc, to sell by way of non-brokered private placement, 12,620,282 common shares in the capital of the Company at CAD$1.42 (US$1.4263) per share for total proceeds of US$18 million.

As quoted in the press release:

Immediately following the closing of the Private Placement, Glencore will directly own 12,620,282 Common Shares representing approximately 7.8% of the issued and outstanding Common Shares. Glencore also holds a $2-million convertible debenture facility (the “Facility”) from Trevali. The outstanding indebtedness under the Facility becomes convertible in September 2012 at the 30-day volume weighted average trading price (“VWAP”) of the Common Shares on the Toronto Stock Exchange with a minimum conversion price of C$0.64 per share. Assuming that the Facility was converted today, the 30-day VWAP of $1.26 per Common Share as of February 28, 2012 would result in the issuance of 1,659,714 Common Shares, together with Glencore’s other holdings would represent approximately 8.8% of the issued and outstanding Common Shares on a partially diluted basis.
Further, an associate of Glencore owns Common Shares and Common Share purchase warrants which together with Glencore’s holdings would represent approximately 12.45% of the Common Shares on a partially diluted basis.

Glencore agreed to the Private Placement in the ordinary course of Glencore’s business. Glencore may from time to time acquire additional securities of Trevali, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its then current position.

Click here to read the Trevali Mining Corporation (TSX:TV) press release