PROJECT UPDATE: Trevali Mining Approved for $30 Million from RMB Resources Funding Facility

Trevali Mining (TSX:TV,OTCQX:TREVF) has received final approval from RMB Resources’ Investment Committee for US$30 million in funding. The money is the first tranche of funds from a September 2012 arrangement under which RMB agreed to provide Trevali with US$60 million in corporate debt financing and funding for its stand-alone mining operation in the Bathurst Mining Camp of New Brunswick.

With the first portion of the financing, RMB has facilitated the advancement of work on the New Brunswick mine and enabled the development project to move closer to production.

In August 2012, Trevali announced that it had shifted its focus to “stand-alone” operations at the Bathurst Mining Camp. The company has been working closely with the province to restart milling operations at the Caribou mine and mill complex, which it acquired from Maple Minerals in May 2012. Trevali signed a Limited Environmental Liability Agreement with the Province of New Brunswick in late January.

“With this agreement in place Trevali can now move another step forward in its near-term activation plans for its Caribou and Halfmile operations, which will form the foundation for the Company’s long-term growth strategies in the Bathurst Mining Camp,” stated Trevali’s CEO and president, Dr. Mark Cruise.

Trevali acquired several assets in New Brunswick in 2011 and within a nine-month period had permitted and built up the projects. The company is currently in production at the Halfmile mine in New Brunswick. Trevali is expecting to ramp up production to 3,000 tonnes per day via the Caribou complex in late 2013.

The company has timed its production schedule to benefit from the zinc deficit that is predicted to result from the closure of exhausted mines, including Xstrata Zinc’s Brunswick 12 mine. Trevali’s proximity to the Brunswick 12 mine has proved beneficial to Trevali, with material from the Halfmile mine being toll processed through the Brunswick 12 mill and produced into good-quality, saleable metal concentrates of zinc, lead–silver and copper–gold.

Trevali also has zinc-lead-silver operations in Peru at the Santander mine. The mine is in the final stages of commissioning and production is expected in the near future.

Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: Trevali Mining is a client of the Investing News Network. This article is not paid-for content.