Trevali Mining Corporation recently confirmed credit approval from Standard Bank of Namibia and Standard Bank of South Africa for a Senior Secured Financing Facility of US$110 million to fund the expansion of the company’s Rosh Pinah mine in southern Namibia.
Explaining the intricacies of the deal to New Era, Trevali’s Director for Investor Relations based in Canada, Jason Mercier, said the financing facility does not have a direct impact on the life of mine, as that is determined by the resource and the mining rate and sequencing.
“The expansion project has an indirect impact on the life of mine as more material is processed but also different material can be mined at a different rate. Future technical reports, as well as confirmation and exploration drilling, will update the life of mine,” said Mercier.
President and CEO of Trevali, Ricus Grimbeek, elaborated that project financing for Rosh Pinah’s expansion had been steadily progressing for the past several months. He noted that the credit approval is a sign of confidence in the Rosh Pinah operation and expansion reflected by endorsement from the financial institutions. “The expansion at Rosh Pinah is the primary focus for Trevali in the coming years and we look forward to working with Standard Bank as a supportive lender that has intimate knowledge about the Rosh Pinah mine, the expansion plan, and long-term operating 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 completion of legal and technical due diligence of the Rosh Pinah mine and the expansion project, including a site visit to the operation.
However, a Trevali statement emphasised that the closing of the Senior Secured Financing Facility was subject to a number of conditions, including the negotiation and settlement of definitive loan facility and security documentation, the execution and delivery of definitive documentation in respect of the other elements of the comprehensive financing package, including an inter-creditor agreement between Standard Bank and the various subordinated secured lenders, and the consent of and release of existing security by Trevali’s senior secured lenders.
“While the company is progressing these various workstreams, there is no certainty that the conditions set out in the Standard Bank credit approval will be satisfied in a timely manner or at all. The company 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 US$20 million,” the statement read.
As previously announced, negotiations for other components of the comprehensive funding package for expansion project and the refinancing of both the existing corporate revolving credit facility and Glencore loan facility, which mature in September 2022, are ongoing, and the company expects to provide a further update on these initiatives in due course.
Trevali is a global base-metals mining company headquartered in Vancouver, Canada. The bulk of Trevali’s revenue is generated from zinc and lead concentrate production at its three operational assets: the 90%-owned Perkoa mine in Burkina Faso, the 90%-owned Rosh Pinah mine in Namibia , and the wholly-owned Caribou mine in northern New Brunswick, Canada.
In addition, Trevali owns the Halfmile and Stratmat Properties and the Restigouche Deposit in New Brunswick, Canada. Trevali also owns an effective 44% interest in the Gergarub Project in Namibia.