Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Trevali Mining Corporation (“Trevali” or the “Company”) (TSX:TV)(FRANKFURT:4TI)(OTCQX:TREVF)(BVLAC:TV) is pleased to announce that it has arranged a non-brokered private placement of up to 10,000,000 common shares at a price of CDN $1.50 per common share to raise gross proceeds of up to CDN $15.0 million (the “Offering”). Closing of the Offering is anticipated to occur on or before July 21, 2011 and is subject to receipt of all necessary regulatory approvals. Securities issued under the Offering will be subject to a hold period that will expire four months and one day from the date of closing as well as any additional hold periods required in jurisdictions where subscribers to the Offering reside. The Company may pay finder’s fees equal to 5% of subscription amounts found, payable in cash or shares, plus issue finder’s warrants in an amount equal to 5% of shares subscribed for, with each such finder’s warrant to be exercisable into one common share of the Company at a price of CDN$1.80 for 18 months from closing.
The proceeds from the Offering will be used to advance the Company’s Halfmile and Santander mine development projects, and for general working capital purposes.
ABOUT TREVALI MINING CORPORATION
Trevali is advancing two polymetallic (zinc-lead-silver-copper) deposits to production in Canada and Peru – the Halfmile and Santander projects respectively. In Canada, Trevali has the Halfmile and Stratmat polymetallic deposits near Bathurst, New Brunswick, and the Ruttan copper-zinc deposit in northern Manitoba. Mine development is underway at Halfmile with a proposed production rate of 2,000-tonnes-per-day anticipated to commence in 2011. In Peru, the Company has the Santander zinc-lead-silver mine project and the formerly-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt.
At Santander, in conjunction with Glencore International A.G., mine commissioning and production is anticipated to commence at 2,000-tonne-per-day in late 2011 with full production to follow immediately thereafter. Additionally through its subsidiary Trevali Renewable Energy Inc., Trevali is undertaking a significant upgrade of its wholly-owned Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.
