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Trevali and First Nations launch Underground Core Mining Training Program in New Brunswick; Cardero Loan Repayment

January 17, 2012

Vancouver, British Columbia...Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV and TV.WT; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) is pleased to announce its support and commitment to the recently launched First Nations Underground Core Mining Training Program through the New Brunswick Community College (NBCC) in Miramichi. The program is a partnership between the Aboriginal Workforce Development Initiative (AWDI), the New Brunswick Department of Post-Secondary Education, Training and Labour (PETL), and Trevali.

AWDI is under the umbrella of the Joint Economic Development Initiative, an organization that supports Aboriginal economic development and workforce development in New Brunswick.

Twelve people from Elsipogtog, Pabineau, Eel Ground, Esgenoopetitj, Eel River Bar and Metepenagiag were selected and are taking part in the initial 11-week training-to-employment initiative for Trevali's Halfmile Mine in the Bathurst Mining Camp of northern New Brunswick. Upon successful graduation candidates will be teamed with experienced miners for on the job-training in all aspects of underground mining operations after which they will receive a certificate, thereby creating a new generation of skilled First Nation trades-people to help serve a growing resource industry.

The course at NBCC, which in spite of the rich mining tradition in the Province is the first of its kind to be offered in New Brunswick, will encompass both theoretical and on the job training and will include essential skills training and instruction on occupational health and safety.

The selection process consisted of an interview process of over 140 individuals from which 24 candidates were identified and they went on to essential skills testing where the first class of twelve candidates now in the course was selected.

Chief David Peter-Paul from Pabineau First Nation stated, "The Impact Benefit Agreement signed between the Mi'gmag First Nations in New Brunswick and Trevali will produce numerous ongoing opportunities to the Mi'gmag in the Province of New Brunswick. Trevali has been aggressively seeking First Nation involvement since the exploration phase of the project and is committed to maintaining First Nation involvement, including employment, contracting, and miners training opportunities throughout the life of the Halfmile mine."

"It is with great excitement that we look forward to our First Nation graduates completion of the Miner Training Program and future employment," stated Terry Richardson, the Mi'gmag Benefits Manager. "It is an opportunity that we know our people will excel at. The Chiefs are very appreciative to Trevali for the support, employment and contract opportunities that will continue to be provided to the First Nations people in New Brunswick."

"The Halfmile mine has job opportunities open to Elsipogtog, Pabineau, Eel Ground, Esgenoopetitj, Eel River Bar and Metepenagiag," stated Alex Dedam, Chair of the Aboriginal Workforce Development Initiative (AWDI). "The Aboriginal Workforce Development Initiative has made a significant financial investment in this project, and we look forward to the social, economic and community spin-offs these jobs will bring to employees, their families, and their communities."

"We are very happy to be partnered in this training initiative with the Mi'gmag First Nations, AWDI and PETL, especially as Trevali has just recently commenced initial production from our Halfmile Mine," said Mark Cruise, President and CEO of Trevali. "Our team has helped to design and successfully implement similar miner training programs in Canada and we look forward to further strengthening our relationship with the Mi'gmag First Nations and broaden the mutual opportunities in the region."

CARDERO LOAN REPAYMENT
Trevali also announces that it has repaid the outstanding loan of US$8,645,260 due to Cardero Resource Corp. ("Cardero") as follows: (i) payment to Cardero of US$5,000,000 in cash; and (ii) the balance of US$3,645,260 (equivalent to C$3,734,569) satisfied by Trevali issuing to Cardero 4,149,521 units ("Units"), with each Unit being comprised of one common share of Trevali ("Common Share") and one-half of one transferrable common share purchase warrant (a "Warrant"), at a deemed price of C$0.90 per Unit. Each whole Warrant will entitle the holder thereof to purchase one Common Share ("Warrant Share") at a price of C$1.10 per share until January 16, 2014.

As a result of the above transaction, Cardero now holds an aggregate of 15,308,953 common shares of Trevali, representing approximately 10.3% of the issued and outstanding common shares of Trevali, plus warrants to acquire an additional 5,328,332 common shares. Assuming the exercise of these warrants, Cardero would then hold 20,637,285, or approximately 13.4%, of the then issued common shares of Trevali (assuming no other warrant or option exercises).

The Common Shares, Warrants and any Warrant Shares issued are subject to a hold period in Canada expiring on May 17, 2012. The Toronto Stock Exchange (TSX) conditionally approved the issuance of securities relating to the Cardero Loan Repayment, subject to the filing of customary documents with the TSX.

ABOUT TREVALI MINING CORPORATION
Trevali has two advanced-stage polymetallic (zinc-lead-silver-copper) deposits in Canada and Peru - the Halfmile and Santander mine projects respectively. In Canada, Trevali owns the Halfmile Mine and Stratmat polymetallic deposit in the Bathurst Mining Camp of northern New Brunswick, and the past-producing Ruttan copper-zinc mine in northern Manitoba. Production from the Halfmile Mine commenced in early 2012 and will ramp up to a planned production rate of 2,000-tonnes-per-day.

In Peru, the Company has the Santander zinc-lead-silver mine project and the former-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt. Mine commissioning is anticipated to commence at the Santander operation in mid- 2012 with ramp up to full 2,000-tonne-per-day production to follow shortly thereafter. Additionally through its wholly-owned subsidiary Trevali Renewable Energy Inc., Trevali is undertaking a significant upgrade of its wholly-owned Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.

The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). Warrants to purchase common shares of Trevali are listed on the TSX (symbol TV.WT). For further details on Trevali, readers are referred to the Company's web site (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

Contact Information:
Steve Stakiw, Manager - Corporate Communications
Email: sstakiw@trevali.com

Phone: (604) 488-1661 / Direct: (604) 638-5623

This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. 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 accuracy of estimated mineral reserves and resources, anticipated results of future exploration, and forecast future metal prices, anticipated results of future electrical sales and expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves. 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.

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. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: 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 (such as the Peruvian sol versus the U.S. dollar); 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 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 reserves 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. 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.

Trevali's production plans at Halfmile-Stratmat and Santander are based only on Indicated and Inferred Mineral Resources and not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the production plans and Preliminary Economic Assessment (PEA) will be realized. Additionally where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The TSX has not approved or disapproved of the contents of this news release.

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