Trevali receives RMB nod for $30-million of financing

2013-02-28 06:38 PT - News Release

Dr. Mark Cruise reports

TREVALI ANNOUNCES APPROVAL OF $30-MILLION PORTION OF RMB RESOURCES FUNDING FACILITY

Thirty million dollars of financing associated with Trevali Mining Corp.'s previously announced (see Sept. 26, 2012, news release) $60-million senior debt and prepaid precious metals facility has received in-principle approval by RMB Resources, the resource financing division of the FirstRand Group of South Africa. The debt facility will be used to repay current debt, fund development towards stand-alone mine and mill operations in the Bathurst Camp of New Brunswick, and for general corporate working capital purposes. The funding is now subject to completion of final documentation, which is in progress, and final approval by RMB's Investment Committee.

This mezzanine tranche of the RMB facility is repayable on the earlier of June 30, 2014, or closing of the final $60-million senior debt facility. The facility bears interest of LIBOR + 8.5% per annum and has an arrangement fee of 5% and 3,000,000 warrants to purchase Trevali common shares on the TSX, issued on the closing date of the facility and exercisable at any time through June 30, 2015 at an exercise price of $1.25 per share, subject to TSX approval.

It is expected that the remaining portion of the $60-million senior debt and prepaid precious metals facility will be approved once ongoing technical studies relating to the commencement of production at the Caribou Project in New Brunswick are completed in April 2013.

"We are very pleased with the approval of the initial $30-million funding by RMB as we continue to focus on advancing our mill and mine development operations in New Brunswick towards production, and securing the final $60 million in senior debt and prepaid silver facilities as previously announced," stated Dr. Mark Cruise, Trevali's President and CEO. "In addition to the imminent commissioning of our Santander Mine in Peru, Trevali aims to maximize its zinc production profile with planned output from Bathurst Mining Camp operations, and looks to benefit from the robust outlook for the commodity in light of the many forecast closures of major zinc producers globally."