Trevali Expands and Extends Debt Facility - Providing AdditiTrevali Expands and Extends Debt Facility - Providing Additional Funds to Strengthen Balance Sheet Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(LMA:TV)(OTCQX:TREVF)(FRANKFURT:4TI)announces that it has amended, by way of entering into a supplemental indenture, its original note indenture with its senior secured holders ("Noteholders") of its $52.5 million senior secured notes (each a "Note" and collectively the "Notes") placed on May 30, 2014 (the "May 2014 Offering") to extend and expand the debt facility.
In light of the challenging commodity-price climate faced by the entire mining sector, the Company initiated discussions with its Noteholders in late-Q3 to seek adjustments under the Notes to both strengthen the Company's balance sheet and preserve working capital. Under the amended agreement, the Company has issued an additional $8.4 million in new Notes ("New Notes") and has received a waiver for the Company's $7.5 million amortization payment scheduled to be made on August 30, 2016 - which will now be deferred until August 30, 2017.
In relation to the above amendments and issuance of New Notes, the 6,468,000 5-year warrants issued in connection with the May 2014 Offering have been repriced downward from $1.26 to $0.475 (representing a 15% premium to the Company's 5-day VWAP ending December 24, 2015) and the term of such Warrants has been extended to a new five-year term. These existing warrants, as amended, cannot be exercised until 10 trading days following the date of this press release. In addition, in connection with the New Notes issued, an additional 1,034,880 5-year Warrants have been issued having an exercise price of $0.475. The Company has also agreed to seek standard anti-dilution protection of the Warrants in certain circumstances, subject to TSX pre-approval.
"We are very pleased to receive such a strong vote of confidence from our Noteholders, leading Canadian financial institutions, as we continue to advance our Caribou Zinc Mine towards commercial production," stated Dr. Mark Cruise, President and CEO of Trevali Mining. "Along with the Company, all stakeholders in the Caribou mine - the Province of New Brunswick, our First Nation partners and Glencore - continue to strongly support our operations and are working diligently to ensure the ongoing success of the project."
The Company has pledged to complete certain post-closing filings and registrations (principally filing on title in New Brunswick a revised amended debenture representing the increase in principal amount of the Notes outstanding) which it is required to complete by January 15, 2016.