10:57 | Lima, May. 03 (ANDINA).
Canadian-based Trevali Mining Corporation said that mine commissioning and production at its Santander zinc-lead-silver mine located in Huaral, Lima, is anticipated to commence in late 2011 with full production to follow immediately thereafter.
"At Santander, in conjunction with our partner Glencore International A.G., mine commissioning and production is anticipated to commence at 2,000-tonne-per-day in late 2011", Trevali said is a statement.
At the beginning of April the company 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 mine, continued exploration expenditures in Peru and for general administrative and corporate purposes.
Last week, Trevali reported that it has signed an engagement letter and indicative term-sheet with WestLB AG, New York Branch (WestLB) for a potential secured term loan of up to US$30 million in order to advance its Santander zinc-lead-silver mine project in west-central Peru to production.
"We are very pleased to enter into a relationship with WestLB. Subject to due diligence, this facility will expedite Trevali's plans to become the next mid-tier base metal producer in the Americas", stated Mark Cruise, Trevali's President and CEO.
Trevali cautions that the successful arrangement and closing of the credit facilities is subject to customary due diligence by WestLB, currently in progress, and ultimately the acceptance of the final terms by Trevali's Board of Directors.
WestLB AG is one of Germany's leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, corporate and structured finance, capital market and transaction services.
WestLB's Metals and Mining team incorporates years of sector experience, with the institutional global reach and local knowledge to deliver advisory, risk management, and corporate and structured finance products in a timely, consistent and reliable manner.
Recent transactions by WestLB Metals and Mining group include provision of debt facilities to companies such as Pan American Silver, Consolidated Thompson, Lundin Mining, Votorantim, Baja Mining and Mercator Minerals.
Trevali is rapidly fast-tracking two advanced polymetallic deposits to production in Canada and Peru – the Halfmile and Santander projects respectively.
At Santander, 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.
Additionally, advanced permitting and engineering studies are in progress at Halfmile with proposed production at a rate of 2,000-tonnes-per-day, anticipated to commence in 2011.
The common shares of Trevali are currently listed on the TSX (symbol TV).