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Trevali Mining Corporation Agrees to Purchase Glencore PLC’s Rosh Pinah and Perkoa Mines for US$400 Million

Published: 03/14/2017

Team: Jennifer Traub, Jen Hansen

On March 13, 2017, Trevali Mining Corporation announced that it had entered into definitive agreements with Glencore PLC and certain of its subsidiaries whereby Trevali will acquire a portfolio of zinc assets from Glencore, including an 80% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39% interest in the Gergarub project in Namibia, an option to acquire 100% interest in the Heath Steele property in Canada and certain related exploration properties and assets for an aggregate purchase price of approximately US$400 million, creating a premier global zinc producer.

In connection with the transaction, Trevali has entered into an agreement with BMO Capital Markets, acting as bookrunner on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase for resale, on a bought deal private placement basis, 191,700,000 subscription receipts (each automatically convertible into one common share upon completion of the transaction) of Trevali at a price of C$1.20 per subscription receipt for gross proceeds to the company of approximately C$230 million. The net proceeds of the offering will be used to help fund a portion of the cash consideration and for general working capital purposes. The other portion of the cash consideration will be funded through a new senior secured credit facility of US$190 million.

Cassels Brock represented the Special Committee of the Board of Trevali Mining Corporation with a team that included Jennifer Traub, Jen Hansen and Alexis Bowie (Securities/Mining).