Trevali gets final nod for first tranche of $60m mezzanine financing
TORONTO (miningweekly.com) – Canada’s TSX-listed zinc-focused Trevali Mining has received final approval by the investment committee of RMB Resources, the resource financing division of South Africa’s FirstRand Group, for the first $30-million tranche of a $60-million senior debt and prepaid precious metals facility.
The debt facility would be used to repay current debt; fund development towards standalone mine and mill operations at the Caribou mill complex, in the Bathurst mining camp of New Brunswick; and for general corporate working capital purposes.
This mezzanine tranche of the RMB facility would be repayable before June 30, 2014, or closing of the final $60-million senior debt facility. The facility bears interest at the London interbank lending rate, plus a coupon rate of 8.5% a year.
Approval of the $30-million loan should help keep the company’s Caribou mill refurbishment on track for a fourth-quarter start-up.
"The final approval of the initial $30-million funding by RMB enables the company to order lead items and advance our New Brunswick mill and mine development project towards production," CEO Dr Mark Cruise on Thursday said in a statement.
The remaining portion of the $60-million senior debt facility awaits final approval, which is dependent on the completion of technical studies at Caribou, and expected in April.
Trevali is also active with construction and commissioning of the Santander zinc/lead/silver mine, in Peru.
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