Namibia: $110m loan from Trevali to fund Rosh Pinah expansion

Trevali Mining Corporation recently confirmed credit approval from Standard Bank of Namibia and Standard Bank of South Africa for a US$110 million senior secured financing facility to fund the Rosh Pinah mine expansion of society in southern Namibia.

Explaining the intricacies of the deal to New Era, Trevali’s Canada-based director of investor relations Jason Mercier said the funding facility has no direct impact on the life of mine. , because it is determined by the resource and the rate of exploitation. and sequencing.

“The expansion project has an indirect impact on the life of the mine, as more material is processed, but different materials may also be mined at a different rate. Future technical reports, as well as confirmation drilling and exploration, will update the life of the mine,” said Mercier.

Trevali Chairman and CEO Ricus Grimbeek said funding for the Rosh Pinah expansion project has been progressing steadily for several months. He noted that credit approval is a sign of confidence in the operation and expansion of Rosh Pinah, reflected in the approval of financial institutions. “The expansion of Rosh Pinah is Trevali’s primary focus in the coming years and we look forward to working with Standard Bank as a supporting lender who has intimate knowledge of the Rosh Pinah mine, development plan expansion and long-term operational success that has been achieved since mining began in 1969,” said Grimbeek.

The recent credit approval follows the execution of a mandate agreement with Standard Bank in March this year and the completion of legal and technical due diligence of the Rosh Pinah mine and expansion project , including a site visit to the farm.

However, a statement from Trevali noted that the closing of the senior secured financing facility was subject to a number of conditions, including negotiation and settlement of the definitive loan facility and security documentation, execution and the delivery of final documentation regarding the other elements of the full financial package, including an inter-creditor agreement between Standard Bank and the various subordinated secured lenders, and the consent and release of the existing security by the senior secured lenders of Trevali.

“While the business progresses through these various projects, there is no certainty that the conditions set out in Standard Bank’s credit approval will be met in a timely manner or at all. The business continues to seek l arrangement of an export credit agency backed equipment financing facility, which may increase the amount available under the senior secured financing facility to up to $20 million,” the statement read. .

As previously announced, negotiations for other components of the comprehensive financing program for the expansion project and the refinancing of Glencore’s existing corporate revolving credit facility and loan facility, which mature in September 2022, are in progress, and the company plans to provide a further update. on these initiatives in due course.

Trevali is a global base metal mining company headquartered in Vancouver, Canada. The bulk of Trevali’s revenue comes from the production of zinc and lead concentrates at its three operating assets: the 90% owned Perkoa mine in Burkina Faso, the 90% owned Rosh Pinah mine in Namibia and the 90% owned Caribou mine. 100% in the north of the country. New Brunswick, Canada.

In addition, Trevali owns the Halfmile and Stratmat properties and the Restigouche deposit in New Brunswick, Canada. Trevali also holds a 44% beneficial interest in the Gergarub project in Namibia.