VANCOUVER (miningweekly.com) – Trevali Mining reported Thursday that a majority of shareholders present and represented at the company’s special meeting have voted in favour of all resolutions presented, including the acquisition of a suite of African zinc assets from Glencore.
TSX- and Lima-listed Trevali will acquire an 80.08% interest in the Rosh Pinah mine, in Namibia, a 90% interest in the Perkoa mine, in Burkina Faso, an effective 39.24% interest in the Gergarub project, in Namibia, an option to acquire a 100% interest in the Heath Steele property, in Canada, and certain related exploration properties and assets.
There were 157.58-million common shares represented in person or by proxy at the special meeting, representing 39.04% of the company’s total issued and outstanding common shares.
“The overwhelming approval by the voting shareholders is a resounding endorsement of the company’s planned acquisition of these zinc mines from Glencore. This transformative transaction will propel Trevali to top-ten global zinc producer status and create a premier pure-play zinc miner with sector-leading leverage to the commodity,” president and CEO Dr Mark Cruise said in a statement.
Under the terms of the $400-million transaction, Glencore will increase its direct ownership in Trevali from 4% to 25% and its board membership to two seats.
Following the transaction, Trevali will have output of about 230 000 t/y of contained zinc, with Glencore maintaining the offtake from all four of Trevali’s mines.
The transaction is subject to customary regulatory approvals and is expected to close by July.