Vancouver, British Columbia: Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) reports its majority-owned subsidiary Rosh Pinah Zinc Corporation (Proprietary) Limited (“RPZC”) in Namibia will, subject to receipt of Companies Registration Office and Registrar approval, undertake a partial share buy-back of issued RPZC shares under agreements with its Namibian shareholders.
RPZC will acquire issued shares tendered under the agreements for an aggregate amount of approximately NAD291,000,000 (approximately USD$24,260,000). The tendered shares will subsequently be cancelled by RPZC’s treasury.
Following the cancellation of the tendered shares, Trevali’s effective beneficial ownership in RPZC will increase from approximately 80 percent to approximately 90 percent.
RPZC Beneficial Ownership Structure:
Beneficial RPZC Ownership (Pre-Transaction)
Beneficial RPZC Ownership (Post-Transaction)
“We welcome this opportunity to strengthen our involvement in Rosh Pinah, which globally is an upper-quartile zinc deposit in terms of grade and tonnage,” stated Dr. Mark Cruise, Trevali’s President and CEO. “Following our recent mineral reserve and resource updates at Rosh Pinah, which remains open for expansion, we have commissioned an independent engineering study examining potential production optionality given the deposit’s almost 50-year history of resource-reserve replacement and growth. Trevali views its operations and investment in Namibia as a long-term relationship to the mutual benefit of all groups involved.”
Rosh Pinah remains on-track for its 2018 production guidance(1) of 105-115 million pounds of payable zinc, 5.7-6.0 million pounds payable lead and 123,000-129,000 ounces of payable silver, on a 100 percent basis. Key strategic improvements started in late-2017 produced significant improvements in overall performance and has positioned the site well for the year with increasing metal output planned for the second half of 2018 as higher-grade stopes are sequenced.
(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused, base metals company with four mines: the wholly-owned Santander mine in Peru, the wholly-owned Caribou mine in the Bathurst Mining Camp of northern New Brunswick, its 80% owned Rosh Pinah mine in Namibia and its 90% owned Perkoa mine in Burkina Faso.
The shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the Frankfurt Exchange (symbol 4TI). For further details on Trevali, readers are referred to the Company’s website (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
TREVALI MINING CORPORATION
“Mark D. Cruise” (signed)
Mark D. Cruise, President
Steve Stakiw, Vice President - Investor Relations and Corporate Communications
Phone: (604) 488-1661 / Direct: (604) 638-5623
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of the Canadian securities legislation and “forward-looking statements” within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission, all as may be amended from time. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the Company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the timing and amount of estimated future production, the estimation of Mineral Resources and Mineral Reserves, costs and timing of development, operating efficiencies, including the ability to manage water, whilst reducing power consumption, costs and expenditures, expectations regarding milling operations and metal production shortfalls, metal output and throughput rates, cost guidance and anticipated annual results, anticipated results of future exploration, and forecast future metal prices.
These statements reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. If any assumptions are untrue, it could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Assumptions have been made regarding, among other things, present and future business strategies and the environment in which the Company will operate in the future, including commodity prices, anticipated costs and ability to achieve goals.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to joint venture operations; fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets; risks related to the technological and operational nature of the Company’s business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru, Namibia, Burkina Faso, or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining; diminishing quantities or grades of Mineral Resources as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company’s ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company’s title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s most recently filed annual information form. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
We advise US investors that while the terms "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize these terms. US investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into reserves.