Trevali arranges $10-million financing
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Trevali arranges $10-million financing
2011-03-21 13:29 PT - News Release
Mr. Steve Stakiw reports
TREVALI ANNOUNCES $10.0 MILLION OVERNIGHT MARKETED PRIVATE PLACEMENT FINANCING
Trevali Resources Corp. has appointed Raymond James Ltd. and M Partners Inc. as its underwriters to sell, by private placement on an overnight marketed basis, common shares of Trevali at a price to be determined in the context of the market for gross proceeds of $7-million. In addition, Trevali will complete a non-brokered private placement on the same terms for gross proceeds of $3-million. The net proceeds are intended to be used for construction of the Santander mine, continued exploration expenditures in Peru and for general administrative and corporate purposes.
The company has agreed to pay the underwriters a cash fee equal to 6 per cent of the gross proceeds from the offering. As additional compensation, the underwriters will be issued compensation options entitling the underwriters to purchase that number of common shares of the company equal to 6 per cent of the number of the common shares sold under the offering exercisable at the close price of Trevali on March 21, 2011, for a period of 24 months from the closing date of the offering. Additionally, a finder's fee of 6 per cent of the gross proceeds of the non-brokered offering may be payable.
The closing of this equity offering is expected to occur on or about April 6, 2011, and is subject to receipt of all necessary regulatory approvals. The common shares and compensation options issued with respect to this equity offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.