VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/30/13 -- 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 finalized all the legal documentation and has closed the $30-million of funding associated with its previously announced $60-million senior debt and prepaid precious metals facility ("Facility") with RMB Resources ("RMB"), the resource financing division of the FirstRand Group of South Africa. The debt facility will be used to repay current debt, fund development towards stand-alone mine and mill operations in the Bathurst Camp of New Brunswick, and for general corporate working capital purposes.
This mezzanine-tranche of the facility is repayable on the earlier of June 30, 2014, or closing of the final $60-million senior debt facility. The facility bears interest of LIBOR + 8.5% per annum and has an arrangement fee of 5% and 3,000,000 warrants to purchase Trevali common shares on the TSX exercisable at any time through June 30, 2015 at an exercise price of $1.05 per share, subject to TSX approval.
It is anticipated that the $60-million senior debt and prepaid precious metals facility will be approved subject to the receipt of positive ongoing technical studies relating to the commencement of production in New Brunswick.
With the closing of the initial funding facility now in place, Trevali will commence its reactivation program and associated studies in the Bathurst Mining Camp of New Brunswick aimed at recommencing operations at the Caribou Mill and Mine complex and at the Halfmile Mine in 2014. The Company has commenced hiring key technical personnel and will initiate orders on key, long-lead-term components for the mill - specifically the SAG mill in the coming week.
"Given the challenging commodity and equity markets, we are very happy to close this initial $30-million funding from RMB and start the reactivation program on our New Brunswick production projects," stated Dr. Mark Cruise, Trevali's President and CEO. "This facility from RMB reflects their confidence in the Company's management team, zinc fundamentals and our production and growth plans going forward from our operations both in Peru and Canada."
ABOUT RMB RESOURCES
RMB Resources is the resource financing division of the FirstRand Group, which is listed on the Johannesburg Stock Exchange (FSR: SJ) and is one of South Africa's largest financial institutions. RMB specializes in providing equity- and debt-financing solutions for small to mid-tier resource companies globally. RMB Resources provides debt funding through conventional project financing, commodity pre-paid forward financing as well as senior, subordinated, standby and bridge financing. Staffed with experienced mining executives, RMB Resources operates from its offices in Sydney, Melbourne, London, Denver and New York.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals development company with active operations in Canada and Peru.
In Peru, the Company is nearing production at its Santander zinc-lead-silver mine where commissioning is expected soon and subsequent ramp up to the planned 2,000-tonnes-per-day production is anticipated by mid-year 2013.
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