Trevali Mining completed the acquisition of a portfolio of zinc assets from Glencore and certain of its subsidiaries, 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, and an option to acquire 100% interest in the Heath Steele project in Canada including certain related exploration properties and assets.
The aggregate purchase price of $417.86 million is comprised of cash consideration of $245.21 million and an aggregate of 193,432,310 common shares in the capital of the company at a deemed price of C$1.20 (97 cents) per common share.
The cash consideration was funded through a combination of the proceeds of a bought deal private placement of subscription receipts conducted by a syndicate of underwriters led by BMO Capital Markets and including Scotia Capital, TD Securities, Eight Capital, National Bank Financial, Paradigm Capital, Cormark Securities, GMP Securities, Haywood Securities and Raymond James advances under a $160-million senior secured term loan and a $30-million senior secured revolving working capital loan.
The loans were available to the company by The Bank of Nova Scotia and SG Americas Securities as co-lead arrangers and joint bookrunners. The Bank of Nova Scotia, Société Générale, Export Development Canada, HSBC Bank Canada and TD Bank were lenders. The facility bears interest on a sliding scale: at a rate of LIBOR + between 3% to 4% or at a base rate plus between 2% to 3% and includes standard and customary finance terms and conditions.
In addition to funding a portion of the cash consideration, a portion of the term facility was used to refinance debt obligations of Trevali’s wholly-owned subsidiary, Trevali Peru, owing to Glencore and its affiliates.