Source: The Gold Report 04/11/2017
Trevali keeps its eye on being THE “pure play” solution as it moves toward closing the agreement with Glencore International to acquire the Rosh Pinah and Perkoa zinc mines.
The mine purchase from Glencore, which was highlighted in The Gold Report’s March 16 article, moved closer to the July 31 closing date with Trevali Mining Corp.’s (TV:TSX; TV:BVL; TREVF:OTCQX) March 29 announcement of its “C$264,546,000 bought deal financing and amendment to agreement to purchase the producing Rosh Pinah and Perkoa Zinc Mines.” With this latest announcement, Trevali Mining is moving closer to its goal of being a “multi-asset, low cost global zinc producer,” as Dr. Mark Cruise, Trevali’s CEO and president, stated in the company’s March 13 press release.
According to Trevali, “The net proceeds of the Offering will be used to fund a portion of the cash consideration payable to certain subsidiaries of Glencore PLC whereby Trevali will acquire a portfolio of zinc assets from Glencore…” The companies also amended that agreement to adjust the “breakdown of the Cash Consideration and Share Consideration to be paid to Glencore on closing of the Transaction to allow a greater portion of the Consideration to be paid in Common Shares.”
Industry analysts have viewed the acquisition favorably. In a March 30 report, Paradigm Capital analyst Jeff Woolley updated its valuation of Trevali “to reflect our pro-forma view of the company. On a pro-forma basis, we estimate Trevali to be trading at a discount to our peer group of junior and intermediate base metal producers. Trevali remains the best means for investors to gain exposure to the zinc market, in our opinion, and is well positioned for a share …read more