VANCOUVER – Trevali Mining Corp. has launched itself into the ranks of global zinc producers with its purchase of interests in two producing mines in Africa. The company is picking up an 80% interest in the Rosh Pinah mine in Namibia and a 90% interest in the Perkoa mine in Burkina Faso from Glencore plc.
The Rosh Pinah zinc mine in Namibia is one of two producers that Trevali Mining is buying from Glencore.
Glencore will receive total consideration of US$400 million, of which US$244 million will be paid in cash and the balance by the issuance of approximately 175.1 Trevali shares. Trevali will also give Glencore US$30 million to repay an existing debt facility. Glencore’s direct ownership in Trevali will increase to 25% from 4% and its representation on the board to two seats.
The two African mines will complement Trevali’s existing operations at the Caribou zinc-lead mine in New Brunswick and Santander copper-zinc mine in Peru. When the transaction is complete in July 2017, Trevali will have annual zinc production of about 230,000 tonnes. Glencore will have the offtake from all four of Trevali’s mines.
Trevali will also receive an effective 39% interest in the Gergarub project in Namibia and an option to acquire 100% interest in the Heath Steele property (a former zinc-lead producer) in New Brunswick.
A detailed overview of the Rosh Pinah and Perkoa zinc mines as well as the transaction details are available in the news release for March 13, 2017, posted at www.Trevali.com.