TSX-V-listed Trevali has received credit approval from Standard Bank for $110-million to fund the expansion of its Rosh Pinah mine, in Namibia.
Credit approval follows the execution of a mandate agreement with Standard Bank in March and completion of legal and technical due diligence of the mine and project, including a site visit to the operation.
"Project financing for the Rosh Pinah expansion (RP2.0) has been steadily progressing for the past several months, and we are pleased to report the confidence in the Rosh Pinah operation and expansion that is reflected by Standard Bank's credit approval and strong endorsement of the RP2.0 project," said president and CEO Ricus Grimbeek.
Trevali is continuing to pursue the arrangement of an export credit agency-backed equipment finance facility, which may increase the amount available under the senior secured financing facility by up to $20-million.
Negotiations for other components of the comprehensive funding package for RP2.0 and the refinancing of both the existing corporate revolving credit facility and Glencore loan facility, which mature in September, were ongoing, the company stated.
RP2.0 will increase Rosh Pinah's throughput from 0.7-million tons a year to 1.3-million tons a year through the modification of the processing plant, construction of a paste fill plant, and development of a dedicated portal and ramp to the WF3 deposit.
The expansion will increase zinc production to 135-million pounds a year at an all-in sustaining cost of $0.67/lb.