VANCOUVER, BC, Aug. 3, 2022
/CNW/ - Trevali Mining Corporation ("Trevali" or the
"Company") (TSX: TV) (BVL: TV) (OTCQX: TREVF) (Frankfurt: 4TI) is pleased to announce that it
has received credit approval from Standard Bank of Namibia Limited
and The Standard Bank of South Africa Limited (together, "Standard
Bank") for a Senior Secured Financing Facility of $110 million to fund the expansion of the
Company's Rosh Pinah Mine ("Rosh Pinah" or the "Mine") in
Namibia. All amounts in this
release are in U.S. dollars unless otherwise indicated.
"Project financing for the Rosh Pinah expansion ("RP2.0") has been steadily progressing for the
past several months, and we are pleased to report the confidence in
the Rosh Pinah operation and expansion that is reflected by
Standard Bank's credit approval and strong endorsement of the
RP2.0 project," said Ricus Grimbeek,
President and CEO of Trevali.
"The expansion at Rosh Pinah is the primary focus for Trevali in
the coming years and we look forward to working with Standard Bank
as a supportive lender that has intimate knowledge about the Rosh
Pinah Mine, the expansion plan, and long-term operating success
that has been achieved since mining began in 1969."
Credit approval follows the execution of a mandate agreement
with Standard Bank in March of this year and completion of legal
and technical due diligence of the Rosh Pinah Mine and the
RP2.0 project, including a site visit
to the operation.
Closing of the Senior Secured Financing Facility is subject to a
number of conditions, including the negotiation and settlement of
definitive loan facility and security documentation, the execution
and delivery of definitive documentation in respect of the other
elements of the comprehensive financing package, including an
intercreditor agreement between Standard Bank and the various
subordinated secured lenders, and the consent of and release of
existing security by Trevali's existing senior secured lenders.
While the Company is progressing these various workstreams, there
is no certainty that the conditions set out in the Standard Bank
credit approval will be satisfied in a timely manner or at all.
The Company is continuing to pursue the arrangement of an Export
Credit Agency ("ECA") backed equipment finance facility, which may
increase the amount available under the Senior Secured Financing
Facility by up to $20 million.
As previously announced, negotiations for other components of
the comprehensive funding package for RP2.0 and the refinancing of both the existing
corporate revolving credit facility and Glencore loan facility,
which mature in September 2022, are
ongoing, and the Company expects to provide a further update on
these initiatives in due course.
The Company is being advised on the debt financing by Endeavour
Financial. Blake, Cassels & Graydon LLP is acting as legal
counsel to the Company with support from the H.D. Bossau & Co.
law firm in Namibia.
Notwithstanding the above arrangement with Endeavour Financial and
Standard Bank, the Company continues to consider all available
financing options.
About Endeavour Financial Limited (Cayman)
Endeavour Financial, with offices in London,
UK, George Town, Cayman Islands and Vancouver,
British Columbia, is one of the
top mining financial advisory firms, with a record of success in
the mining industry, specializing in arranging multi-sourced
funding solutions for development-stage companies. Founded in 1988,
Endeavour Financial has a well-established reputation of achieving
success with over US$500 million in royalty and stream
finance, US$5.4 billion in debt finance and US$28
billion in mergers and acquisitions. The Endeavour Financial
team has diverse experience in both natural resources and finance,
including investment bankers, geologists, mining engineers, cash
flow modelers and financiers.
About Trevali Mining Corporation
Trevali is a global
base-metals mining Company headquartered in Vancouver, Canada. The bulk of Trevali's
revenue is generated from zinc and lead concentrate production at
its three operational assets: the 90%-owned Perkoa Mine in
Burkina Faso, the 90%-owned Rosh
Pinah Mine in Namibia, and the
wholly owned Caribou Mine in northern New
Brunswick, Canada. In addition, Trevali owns the Halfmile
and Stratmat Properties and the Restigouche Deposit in New Brunswick, Canada. Trevali also owns an
effective 44% interest in the Gergarub Project in Namibia. The Company's growth strategy is
focused on the exploration, development, operation, and
optimization of properties within its portfolio, as well as other
mineral assets it may acquire that fit its strategic criteria.
Trevali's vision is to be a responsible, top-tier operator of
long-life, low-cost mines in stable pro-mining jurisdictions.
Trevali is committed to socially responsible mining, working
safely, ethically, and with integrity. Integrating responsible
practices into its management systems, standards, and
decision-making processes is essential to ensuring everyone and
every community's long-term sustainability.
The shares of Trevali are listed on the TSX (symbol TV), the
OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the
Frankfurt Exchange (symbol 4TI). For further details on Trevali,
readers are referred to the Company's website (www.trevali.com) and
to Canadian regulatory filings on SEDAR at www.sedar.com.
Cautionary Note Regarding Forward-Looking Information and
Statements
This news release contains "forward-looking
information" within the meaning of Canadian securities legislation
and "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995
(collectively, "forward-looking statements"). Forward-looking
statements are based on the beliefs, expectations and opinions of
management of the Company as of the date the statement are
published, and the Company assumes no obligation to update any
forward-looking statement, except as required by law. In certain
cases, forward-looking statements can be identified by the use of
words such as "plans", "expects", "outlook", "guidance", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might", "will be taken", "occur" or "be achieved" or the negative
of these terms or comparable terminology. Forward-looking
statements relate to future events or future performance and
reflect management's expectations or beliefs regarding future
events including, but not limited to, statements with respect to
the financing of the RP2.0 project,
including with respect to the credit approval obtained by Standard
Bank for the Senior Secured Financing Facility and the expected
commercial terms of such facility, the terms and conditions of
Standard Bank's credit approval, including the negotiation and
execution of definitive loan and security documentation, the
potential arrangement of an ECA-backed equipment finance facility
and the ability of same to increase credit availability under the
Senior Secured Financing Facility, the other components of the
comprehensive financing package being sought by the Company for
RP2.0 and to refinance the Company's
existing secured debt facilities, including the status and
anticipated timing with respect to such components. By their very
nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to the Company's
financing efforts, including that the Company may not enter into
the Senior Secured Finance Facility on the terms contemplated by
the Standard Bank credit approval, or at all; that the ECA-backed
equipment finance facility, or other planned components of the
comprehensive financing package being sought by the Company, will
not be available on terms acceptable to the Company, or at all;
that the Company's efforts to finance RP2.0 and refinance the existing secured debt
prior to its maturity in September
2022 may ultimately prove unsuccessful; dependence on key
personnel; labour pool constraints; labour disputes; increased
operating and capital costs; foreign currency exchange rate
fluctuations; operating in foreign jurisdictions with risk of
changes to governmental regulation; compliance with governmental
regulations; compliance with environmental laws and regulations;
maintaining ongoing social license to operate; impact of climatic
conditions on the Company's mining operations; limitations inherent
in our insurance coverage; litigation; and other risks of the
mining industry including, without limitation, other risks and
uncertainties that are more fully described in the Company's annual
information form, interim and annual audited consolidated financial
statements and management's discussion and analysis of those
statements, all of which are filed and available for review under
the Company's profile on SEDAR at www.sedar.com. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Trevali provides no assurance
that forward-looking statements will prove to be accurate, as
actual results and future events may differ from those anticipated
in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
SOURCE Trevali Mining Corporation
