06:15 | Lima, Apr. 08 (ANDINA).
Canadian-based Trevali Resopurces announced the closing of an underwritten private placement financing for total gross proceeds of US$ 6.41 million, which are intended to be used for construction of the Santander Mine, continued exploration expenditures in Peru and for general administrative and corporate purposes.
The placement financing co-led by Raymond James Ltd. and M Partners Inc. (the underwriters), was previously announced by a news release dated March 21, 2011.
Under the terms of the Brokered Private Placement, Trevali issued a total of 3 million 236,842 common shares at a price of C$1.90 per common share. The Brokered Private Placement is being completed in conjunction with a non-brokered private placement, with aggregate gross proceeds totalling $10.0 million.
Under the Brokered Private Placement, Trevali paid the underwriters a cash commission of C$369,000 and also issued to the Underwriters a total of 194,210 compensation options.
Each Compensation Option entitles its holders thereof to purchase one (1) common share, exercisable at a price of C$2.34 per common share for a period of twenty-four (24) months following the closing of the Brokered Private Placement.
Concurrent with the Brokered Private Placement, Trevali is also completing a Non-Brokered Private Placement of 2 million 26,315 common shares for gross proceeds to Trevali of C$3,850,000. This Non-Brokered Private Placement is expected to close by the end of the week of April 4th, 2011.
The securities issued under the Brokered Private Placement and Non-Brokered Private Placement will be subject to a four-month period.
Trevali in conjunction with its partner, Glencore International A.G., has entered into a definitive development agreement for the Santander zinc-lead-silver project in west-central Peru.
The agreement will see Glencore provide and operate on the property, a 2,000-tonne-per-day concentrate plant, undertake mining operations on a 'contractor/toll basis' and enter into a long-term concentrate offtake agreement with the company for 100% of the Santander project's production at International Benchmark terms.
Additionally, through its wholly owned subsidiary Trevali Renewable Energy Inc., the company is undertaking a significant upgrade of the 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.
Trevali has also recently entered into a definitive Arrangement Agreement with Kria Resources Ltd. to complete a business combination whereby Trevali will acquire all of the issued and outstanding common shares of Kria, which will become a wholly-owned subsidiary of Trevali.
(END) LVT/LVT
Publicado: 8/4/2011