Trevali shareholders vote overwhelmingly in favour of African asset acquisitions

18th May 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Trevali Mining reported Thursday that a majority of shareholders present and represented at the company’s special meeting have voted in favour of all resolutions presented, including the acquisition of a suite of African zinc assets from Glencore.

TSX- and Lima-listed Trevali will acquire an 80.08% interest in the Rosh Pinah mine, in Namibia, a 90% interest in the Perkoa mine, in Burkina Faso, an effective 39.24% interest in the Gergarub project, in Namibia, an option to acquire a 100% interest in the Heath Steele property, in Canada, and certain related exploration properties and assets.

There were 157.58-million common shares represented in person or by proxy at the special meeting, representing 39.04% of the company’s total issued and outstanding common shares.

“The overwhelming approval by the voting shareholders is a resounding endorsement of the company’s planned acquisition of these zinc mines from Glencore. This transformative transaction will propel Trevali to top-ten global zinc producer status and create a premier pure-play zinc miner with sector-leading leverage to the commodity,” president and CEO Dr Mark Cruise said in a statement.

Under the terms of the $400-million transaction, Glencore will increase its direct ownership in Trevali from 4% to 25% and its board membership to two seats.

Following the transaction, Trevali will have output of about 230 000 t/y of contained zinc, with Glencore maintaining the offtake from all four of Trevali’s mines.

The transaction is subject to customary regulatory approvals and is expected to close by July.

Edited by Creamer Media Reporter

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