Trevali Obtains Credit Approval for $110M Senior Credit Facility for Rosh Pinah Expansion (“RP2.0”)
VANCOUVER, BC, August 3, 2022 /CNW/ – Trevali Mining Company (“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 Standard Bank of South Africa Limited (together, “Standard Bank”) for a secured funding facility of first rank of $110 million to finance the expansion of the Company’s Rosh Pinah Mine (“Rosh Pinah” or the “Mine”) in Namibia. All amounts in this release are in US dollars, unless otherwise indicated.
“Funding for the Rosh Pinah expansion project (“RP2.0“) has progressed steadily over the past few months, and we are pleased to report confidence in the operation and expansion of Rosh Pinah which is reflected in credit approval from Standard Bank and strong support from the RP2.0 project,” said Ricus Grimbeek, President and CEO of Trevali.
“The expansion of Rosh Pinah is Trevali’s primary focus in the coming years and we look forward to working with Standard Bank as a supporting lender who has intimate knowledge of the Rosh Pinah mine, development plan expansion and long-term operational success that has been achieved since mining began in 1969.”
The credit approval follows the execution of a mandate agreement with Standard Bank in March this year and the completion of legal and technical due diligence of the Rosh Pinah mine and RP2.0 project, including a site visit to the farm.
Closing of the Senior Secured Financing Facility is subject to a number of conditions, including negotiation and settlement of the definitive loan facility and collateral documentation, execution and delivery of definitive documentation relating to the other elements of the overall financing package, including an intercreditor agreement between Standard Bank and the various subordinated secured lenders, and the consent and release of existing security by Trevali’s existing senior secured lenders. As the Company progresses on these various projects, there is no certainty that the conditions set out in Standard Bank’s credit approval will be satisfied in a timely manner or at all.
The Company is pursuing the establishment of an Export Credit Agency (“ECA”) backed equipment financing facility, which may increase the amount available under the senior secured financing facility up to ‘at $20 million.
As previously announced, negotiations of other elements of the global funding program for RP2.0 and the refinancing of Glencore’s existing corporate revolving credit facility and loan facility, which mature in September 2022are underway, and the Company expects to provide a further update on these initiatives in due course.
The Company is advised on debt financing by Endeavor Financial. Blake, Cassels & Graydon LLP is acting as legal counsel to the Company with the support of the law firm HD Bossau & Co. in Namibia. Notwithstanding the above arrangement with Endeavor Financial and Standard Bank, the Company continues to review all available financing options.
About Endeavor Financial Limited (Caymans)
Endeavor Financial, with offices in London, UK, George Town, Cayman Islands and Vancouver, British Columbia, is a leading financial advisory firm in the mining sector, with a track record of success in the mining industry, specializing in arranging multi-source financing solutions for development-stage companies. Founded in 1988, Endeavor Financial has a well-established reputation for success with over US$500 million in royalty and stream financing, US$5.4 billion in debt financing and US$28 billion in mergers and acquisitions . The Endeavor Financial team has a diverse background in 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. Most of Trevali’s revenues come from the production of zinc and lead concentrates at its three operating assets: the Perkoa mine, 90% owned in Burkina Fasothe Rosh Pinah mine, 90% owned Namibiaand the wholly-owned Caribou mine in the north New Brunswick, Canada. In addition, Trevali owns the Halfmile and Stratmat properties and the Restigouche deposit in New Brunswick, Canada. Trevali also holds a 44% effective interest in the Gergarub project in Namibia. The Company’s growth strategy is focused on the exploration, development, exploitation and optimization of the properties in its portfolio, as well as other mining assets that it may acquire and which correspond to its strategic criteria. . Trevali’s vision is to be a responsible, leading operator of long-lived, low-cost mines in stable mining-friendly jurisdictions. Trevali is committed to socially responsible mining, working safely, ethically and with integrity. Incorporating responsible practices into its management systems, standards and decision-making processes is essential to ensure the long-term sustainability of each and every community.
Trevali shares are listed on the TSX (symbol TV), OTCQX (symbol TREVF), Lima Stock Exchange (symbol TV) and Frankfurt Stock Exchange (symbol 4TI). For more details on Trevali, readers are referred to the Company’s website (www.trevali.com) and Canadian regulatory filings on SEDAR at www.sedar.com.
Caution Regarding Forward-Looking Information and Statements
This press release contains “forward-looking information” within the meaning of Canadian securities laws 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 the Company’s management as of the date the statement is made, and the Company undertakes no obligation to update any forward-looking statement, except as required by law. ‘required. In some cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “outlook”, “directions”, “budget”, “expected”, “estimates”, ” forecasts”, “intends”, “anticipates” or “believes”, or variations of these words and expressions or statements that certain actions, events or results “could”, “might”, “would”, “might” , “would be taken”, “occur” or “be achieved” or the negative form 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 regarding the financing of the RP2.0 project, including with respect to the credit approval obtained by Standard Bank for the Senior Secured Funding Facility and the expected commercial terms of such facility, the terms and conditions of Standard Bank’s credit approval, including including the negotiation and execution of definitive loan and guarantee documentation, the potential arrangement of an ECA-backed equipment finance facility and the ability of the ECA to increase the availability of credit in the framework of the senior secured financing facility, the other components of the complete financial package sought by the Company for RP2.0 and to refinance the Company’s existing secured credit facilities, including the status and expected timing with respect to such components. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that 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 forward-looking statements. – look at the statements. These factors include, among others, risks relating to the Company’s financing efforts, including that the Company may not enter into the Senior Secured Funding Facility on the terms contemplated by Standard Bank’s credit approval. , or not at all ; that the equipment financing facility supported by the ECA, or other anticipated components of the overall financing package 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 existing secured debt prior to its maturity by September 2022 may ultimately prove unsuccessful; reliance on key personnel; labor pool constraints; labor disputes; increased operating and capital costs; exchange rate fluctuations; operate in foreign jurisdictions with the risk of changing government regulations; compliance with government regulations; compliance with environmental laws and regulations; maintaining a social license continues to operate; the impact of weather conditions on the Company’s mining operations; limitations inherent in our insurance coverage; dispute; and other risks of the mining industry, including, without limitation, other risks and uncertainties which are more fully described in the Company’s Annual Information Form, interim and annual audited consolidated financial statements and the MD&A of such 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 the forward-looking statements, there may be other factors that cause the actions, events or results are not those intended, estimated or intended. Trevali does not guarantee 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
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