Trevali Mining, owner of the Caribou zinc mine in New Brunswick seen here, is vaulting itself into the ranks of the world’s top 10 zinc producers with its recent acquisitions. (Credit: Trevali Mining)
VANCOUVER – Trevali Mining Corp. has agreed to pay US$417.9 million for Glencore’s portfolio of zinc assets in Africa. The deal includes an 80% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39% interest in the Gergarub project in Namibia, and an option to acquire a 100% interest in the Heath Steele project in New Brunswick.
Trevali will give Glencore US$245.2 million in cash and issue 193.4 million shares at a deemed price of C$1.20 each. Glencore will then have a 25.6% interest in Trevali.
“We are very pleased to finalize our acquisition of the Rosh Pinah and Perkoa zinc mines,” said Dr. Mark Cruise, president and CEO of Trevali. “All of the deposits remain open for expansion and active resource expansion programs are in progress. Additionally, we welcome Glencore as a key strategic shareholder in Trevali, expanding on the strong, proven business relationship we’ve enjoyed since 2010 at our Santander operation.”
Trevali originally operated two underground zinc mines – the Caribou mine in New Brunswick and the Santander mine in Peru. Production guidance for 2017 from these mines is 90 million to 93 million lb. of zinc and 30 million to 32 million lb. of lead at Caribou, and 52 million to 57 million lb. of zinc and 12 million to 14 million lb. of lead at Santander.
With the additional production from the two new mines, Trevali will find itself in the ranks of the world’s top 10 zinc producers. Guidance for 2017 for the Rosh Pinah mine is 100 million to 105 million lb. of zinc and 9 million to 11 million lb. of lead, and for the Perkoa mine is 154 million to 170 million lb. of zinc.
Details of all these mines and projects is available at www.Trevali.com.