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).