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Trevali Closes Acquisition of Maple Minerals to Acquire

Trevali Closes Acquisition of Maple Minerals to Acquire Modern 3,000
Tonne-Per-Day Caribou Mill Complex and Mine in New Brunswick 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/05/12 -- Trevali
Mining Corporation ("Trevali" or the "Company")
(TSX:TV)(TSX:TV.WT)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) is pleased to
announce that it has completed the acquisition of Maple Minerals
Corporation ("Maple"), a private New Brunswick incorporated company,
that owns the 3,000 tonne-per-day Caribou mill and mine complex
located in the Bathurst Mining Camp of northern New Brunswick
(herein, the "Transaction"). 
Pursuant to the terms of a combination agreement dated May 14, 2012,
a wholly-owned subsidiary of Trevali, Trevali Mining (New Brunswick)
Ltd., and Maple have amalgamated in a three cornered amalgamation
with Trevali, and Trevali has issued to the former shareholders of
Maple 20,000,010 common shares of Trevali and 3,999,986 common share
purchase warrants with each warrant exercisable at $2.00 per share
for one year following the closing date ("Closing") of the
Transaction. Based on the closing price of Trevali on the Toronto
Stock Exchange ("TSX") on November 2, 2012, the Transaction implies
an acquisition price of approximately $22 million for Maple. Trevali
shares issued under the Transaction are subject to a lock-up
agreement and the former principal shareholders of Maple receiving
Trevali shares are also subject to voting support and stand-still
agreements (see Transaction Details). 
"We are extremely pleased to complete the acquisition of this highly
strategic asset as we continue to consolidate our position within the
Bathurst Mining Camp. The modern Caribou Mill provides Trevali with a
cost-effective, fast-track milling solution for our New Brunswick
operating unit, and it positions the Company to maximize shareholder
value in light of anticipated near-term global zinc deficits," stated
Dr. Mark Cruise, Trevali's President and CEO. "We look forward to
continued positive relationships with the Province of New Brunswick
and our Mi'gmag First Nation partners in order to expand Trevali's
operations in a timely and responsible manner. As stated previously,
subject to receipt of all necessary approvals and permits, Trevali is
confident tha
t it can quickly provide an additional 120-150 initial
full-time employment positions in a short-timeframe as well as expand
upon our very successful First Nations Underground Core Mining
Training Program. Medium-to-longer term, the Company hopes to be in a
position to provide 400-450 full-time positions within the region." 
HIGHLIGHTS OF THE ACQUISITION 


 
--  Provides Trevali with a modern, state-of-the-art 3,000 tonne-per-day
    processing plant (that will produce zinc, lead and copper concentrates)
    and includes a metallurgical and geochemical laboratory and permitted
    tailings treatment facility (Figures 1 and 2). 
--  Addition of a former producing mine with significant underground
    development workings and historic resources that can be rapidly and cost
    effectively brought on-line. The deposit remains open for expansion and
    Trevali classifies the upside potential as good to excellent: the
    deepest underground intercept to date returned 34.77 metres at 7.22%
    zinc, 2.69% lead, 0.25% copper, 76.8 g/t silver and 2.19 g/t gold. 
--  Very significant financial, technical and timing advantages/de-risk
    versus permitting and building a new stand-alone milling complex for the
    Company's Halfmile and Stratmat deposits. 
--  Preferable from a social and sustainability perspective - near-term
    creation of an additional 120-150 full-time employment positions,
    establishing Trevali as one of the larger employers in northern New
    Brunswick, and utilization of a working brown-field industrial site
    versus a green-field site. 
--  Due to superior quality of the Halfmile-Stratmat mineralization (coarser
    mineralogy with good metallurgical characteristics), modeling of the
    mill grinding circuit indicates it is readily modifiable to produce
    saleable zinc, lead (silver) and copper (gold) concentrates. 
--  Near optimal timing from a production scheduling perspective for the
    Company to benefit from predicted significant zinc deficits as Brunswick
    12 shuts-down followed by closures of several other globally significant
    marque zinc producers in Europe, Africa and Austral-Asia. 
--  Further strengthens and confirms Trevali's position as a near-term
    intermediate zinc producer. 

 
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/trefig1.pdf. 
CARIBOU DEPOSIT 
A 2006 historic resource estimate by the previous operator at Caribou
tabled significant resources in the deposit (Table 1). Trevali plans
to undertake an updated National Instrument 43-101 (NI 43-101)
compliant resource estimate for the Caribou polymetallic deposit in
early 2013. 


 
----------------------------------------------------------------------------
Caribou Historic                   %       %      Ag      Zn      Pb      Ag
 Resources(i)         Tonnes      Zn      Pb   (gpt)  (Mlbs)  (Mlbs)   (Moz)
----------------------------------------------------------------------------
                                                         Contained Metal    
----------------------------------------------------------------------------
Indicated                                                                   
 Resources         3,810,000     7.5    3.26      92     629     273    11.2
----------------------------------------------------------------------------
Inferred Resources 3,944,300    7.36    3.59     107     639     312    13.5
----------------------------------------------------------------------------

 
Table 1: Historic Caribou deposit resources(i) based on a 2006 NI
43-101 report dated January 30, 2006 prepared by InnovExplo Inc (and
reviewed by Micon International Limited in its technical report dated
March 23, 2006) for Blue Note Metals Inc. Historic resource estimate
is based on 554 diamond drill holes and 6,000 chip samples and using
a 9% lead+zinc cut-off grade. Copper and gold were not estimated.  
(i)Note: The Company cautions that although the 2006 resource
estimate was calculated under NI 43-101 regulations, it is not
treating such estimates as a current resource under NI 43-101.
Investors are further cautioned that a qualified person has not yet
completed sufficient work to be able to verify the historical
resource estimates, and therefore such historic resource estimates
should not be relied upon.  
Between 2006 and 2007, the previous operator of the Caribou mill and
mine complex invested approximately $100-to-120 million in a major
overhaul and modernization of the processing plant and mine
infrastructure (effectively new state-of-the-art milling and grinding
circuits - Isa Mills and On-Stream analysers to optimize recoveries)
(Figure 1). The mine operated for approximately 13 months prior to
going into receivership in 2008 due to depressed commodity prices and
adverse global financial conditions. 
Immediately prior to shut down, mill records indicate recoveries of
71% Pb and 83% Zn to produce saleable concentrates. Historically no
copper concentrates were produced, which represents additional
near-term upside as Trevali intends to add a copper circuit to the
processing plant. 
Trevali believes that the historically defined deposit contains
excellent exploration potential and production can be f
ast-tracked to
provide additional mill-feed (and employment opportunities). Specific
upside includes: 


 
--  Historically defined deposit remains open along strike and at depth; 
    
--  Silver and gold may be under-estimated by up to 20-30% as there was no
    routine precious metal analysis in historic drill holes; and 
    
--  Significant copper 'feeder' zones were not mined due to lack of a copper
    circuit. A historic non- NI 43-101 resource(ii) for one such near-
    surface zone suggests that it could contain 2.5 million tonnes at 0.89%
    copper, 3.2% zinc, 1% lead and 40 g/t silver within which significant
    higher grade zones occur. 
    
    (ii)The Company cautions again, however, that the foregoing is
    historical in nature and that more work is required in order to define a
    NI 43-101 resource. As previously stated, Trevali plans to undertake an
    updated NI 43-101 compliant resource estimate for the Caribou
    polymetallic deposit in early 2013. 

 
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/trefig2.pdf. 
SPROTT BRIDGE LOAN FACILITY 
In order to facilitate the closing of the Maple transaction, Trevali
and Sprott Resource Lending Partnership ("Sprott") have amended the
$10-million bridge-loan credit facility agreement announced on August
15, 2012, increasing it to $16-million under similar terms. The
additional proceeds were used to redeem Maple's $6 million debenture
issued earlier this year to Breakwater Resources Ltd. (Nyrstar). In
connection with Sprott's advance of an additional $6 million to
Trevali, Sprott received a $60,000 structuring fee and 158,127 common
shares as a bonus. 
Trevali and RMB Resources continue to make progress on securing a
$60-million senior, corporate-level debt facility in order to support
the Caribou Mill re-start. It is anticipated that upon completion of
such a senior-debt facility, that Trevali will repay the $16 million
Sprott bridge credit facility in full. 
TRANSACTION DETAILS 
As previously announced, since May 14, 2012, the date Trevali and
Maple executed the Combination Agreement, Trevali has, through a
transition services agreement, managed the Caribou Mine operations.
This has included Trevali providing Maple with equity advances in the
amount of approximately $3,943,800 through the end of October, 2012
to enable Maple to meet its financial obligations for the Caribou
Mine as such obligations fell due prior to Closing. In addition, on
Closing, Trevali has (subject to certain limitations set forth in the
transaction documents) agreed to assume all other financial
(including short-term, non-interest bearing debt in the principal
amount of $729,972 USD) and other obligations of Maple in relation to
the Caribou mine and mill complex. Such other obligations include a
legal claim (the "Claim") commenced in New Brunswick in May 2012 by
two plaintiffs (Margaret Kent and Ross F. Burns) against Maple and
certain of its principals. In the Claim, the plaintiffs claim, among
other things, a 24.5% interest in Maple and/or its underlying assets.
Trevali and Maple, including Maple's former principals who are named
defendants, believe that the Claim is without merit and plan to
defend the matter vigorously. On Closing of the Transaction, a
finder's fee of 2% is payable to an arms-length third party. 
The majority shareholder of Maple, MMC Holding - a private limited
company incorporated under the laws of the Grand Duchy of Luxembourg
("MMC"), has entered into a voting support and standstill agreement
(herein, the "Lock-Up Agreement") pursuant to which, among other
things, MMC has agreed to support, for a period of one year from
Closing, the Company's Board nominees and has further agreed to
restrictions on the disposition of certain of the Trevali common
shares issuable to MMC at Closing. Furthermore, pursuant to the
Lock-Up Agreement, MMC has agreed not to acquire any additional
Trevali common shares (other than through the exercise of warrants
issued to MMC at Closing) for a period of 2 years from Closing,
without the consent of Trevali. In addition, under the Lock-Up
Agreement, MMC has agreed not to (and to cause any transferee of its
shares not to) dispose more than 10% of its shareholdings through the
facilities of any stock exchange on which Trevali's common shares are
listed for a period of one year from Closing. The shares issued to
MMC on Closing contain a four month and one day statutory resale
restriction. MMC has also agreed to guarantee the representations and
warranties given by Maple under the Combination Agreement and, to
this end, has escrowed 20% of its Trevali shares (namely 3,967,399
common shares) received at Closing in support of its guarantee. 
Upon completion of the Transaction, Trevali has 197,098,695 common
shares issued and outstanding with the current shareholders of Maple
now holding approximately 10.15% of the common shares of Trevali. 
The Company continues to work closely with the Province of New
Brunswick in respect to securing an environmental liability sharing
agreement in form and substance similar to that enjoyed by previous
operators of the Caribou Mine. 
Qualified Person and Quality Control/Quality Assurance  
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and a
qualified person as defined by NI 43-101, has supervised the
preparation of the scientific and technical information that forms
the basis for this news release. Dr. Cruise is not independent of the
Company, as he is an officer, director and shareholder. 
ABOUT TREVALI MINING CORPORATION  
Trevali is a zinc-focused base metals development company with
operations in Canada and Peru - the Halfmile and Santander mines
respectively. In Canada, Trevali owns the Halfmile zinc-lead-silver
mine, the Caribou Mine and Mill, and Stratmat polymetallic deposit
all located in the Bathurst Mining Camp of northern New Brunswick.
The Company also has the past-producing Ruttan copper-zinc mine in
northern Manitoba. Initial production from the Halfmile mine
commenced in early 2012 and underground development is ramping up to
achieve a planned production rate of approximately
3,000-tonnes-per-day to feed planned operations at the Company's
Caribou Mill Complex in 2013. 
In Peru, the Company has the Santander zinc-lead-silver mine and the
former-producing Huampar silver mine, both located in the Central
Peruvian Polymetallic Belt. Mine commissioning is anticipated to
commence at the Santander operation in Q4-2012 with ramp up to full
2,000-tonnes-per-day production in 2013. Additionally through its
wholly-owned subsidiary, Trevali Renewable Energy Inc., Trevali plans
to undertake a significant upgrade of its wholly-owned Tingo
run-of-river hydroelectric generating facility to allow, in addition
to supplying power to the Santander mining operation, the potential
sale of surplus power into the Peruvian National Energy Grid. 
The common shares of Trevali are listed on the TSX (symbol TV), the
OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV).
Warrants to purchase common shares of Trevali are listed on the TSX
(symbol TV.WT). For further details on Trevali, readers are referred
to the Company's web site (www.trevali.com) and to Canadian
regulatory filings on SEDAR at www.sedar.com. 
On Behalf of the Board of Directors of 
TREVALI MINING CORPORATIO
N 
Mark D. Cruise, President 
This news release contains "forward-looking statements" within the
meaning of the United States private securities litigation reform act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Statements containing
forward-looking information express, as at the date of this news
release, the Company's plans, estimates, forecasts, projections,
expectations, or beliefs as to future events or results and the
company does not intend, and does not assume any obligation to,
update such statements containing the forward-looking information.
Such forward-looking statements and information include, but are not
limited to statements as to: the accuracy of estimated mineral
reserves and resources, anticipated results of future exploration,
and forecast future metal prices, anticipated results of future
electrical sales and expectations that environmental, permitting,
legal, title, taxation, socio-economic, political, marketing or other
issues will not materially affect estimates of mineral reserves.
These statements reflect the Company's current views with respect to
future events and are necessarily based upon a number of assumptions
and estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. 
These statements reflect the Company's current views with respect to
future events and are necessarily based upon a number of assumptions
and estimates that, while considered reasonable by the company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors,
both known and unknown, could cause actual results, performance or
achievements to be materially different from the results, performance
or achievements that are or may be expressed or implied by such
forward-looking statements contained in this news release and the
company has made assumptions and estimates based on or related to
many of these factors. Such factors include, without limitation:
fluctuations in spot and forward markets for silver, zinc, base
metals and certain other commodities (such as natural gas, fuel oil
and electricity); fluctuations in currency markets (such as the
Peruvian sol versus the U.S. dollar); risks related to the
technological and operational nature of the Company's business;
changes in national and local government, legislation, taxation,
controls or regulations and political or economic developments in
Canada, the United States, Peru or other countries where the Company
may carry on business in the future; risks and hazards associated
with the business of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or
unexpected geological or structural formations, pressures, cave-ins
and flooding); risks relating to the credit worthiness or financial
condition of suppliers, refiners and other parties with whom the
Company does business; inadequate insurance, or inability to obtain
insurance, to cover these risks and hazards; employee relations;
relationships with and claims by local communities and indigenous
populations; availability and increasing costs associated with mining
inputs and labour; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses and
permits and the presence of laws and regulations that may impose
restrictions on mining,; diminishing quantities or grades of mineral
reserves as properties are mined; global financial conditions;
business opportunities that may be presented to, or pursued by, the
Company; the Company's ability to complete and successfully integrate
acquisitions and to mitigate other business combination risks;
challenges to, or difficulty in maintaining, the Company's title to
properties and continued ownership thereof; the actual results of
current exploration activities, conclusions of economic evaluations,
and changes in project parameters to deal with unanticipated economic
or other factors; increased competition in the mining industry for
properties, equipment, qualified personnel, and their costs.
Investors are cautioned against attributing undue certainty or
reliance on forward-looking statements.  
Although the Company has attempted to identify important factors that
could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements or
information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements or
information, other than as required by applicable law. 
Trevali's production plans at Halfmile-Stratmat and Santander are
based only on Indicated and Inferred Mineral Resources and not
Mineral Reserves and do not have demonstrated economic viability.
Inferred Mineral Resources are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as Mineral Reserves, and there is
therefore no certainty that the conclusions of the production plans
and Preliminary Economic Assessment (PEA) will be realized.
Additionally where Trevali discusses exploration/expansion potential,
any potential quantity and grade is conceptual in nature and there
has been insufficient exploration to define a mineral resource and it
is uncertain if further exploration will result in the target being
delineated as a mineral resource. 
The TSX has not approved or disapproved of the contents of this news
release. 
Contacts:
Trevali Mining Corporation
Steve Stakiw
Manager - Corporate Communications
(604) 488-1661 / Direct: (604) 638-5623
sstakiw@trevali.com
www.trevali.com
 
 
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