Teal Valley T.TV

RE:Trevali RP2

[Galvanizer]

Kiln wrote: It is reasonable to assume they will sell a silver streaming/royalty interest in RP2 to raise the cash. I expect they will announce a transaction over the next couple of weeks, locking in the sale of 200,000 ounces of silver per year for $40 million. At current metal prices RP2 represents 100% of the current market capitalization. The share price should respond positively to the financing.

Capstone announced its silver streaming arrangement with Wheaton (Feb 2021) -  Capstone Mining - Capstone Announces Closing of $150 Million Silver Stream Agreement with Wheaton Precious Metals; Achieves Net Cash Position  It includes $150M for (1) the first 10M silver ounces and then (2) 33% of the remaining silver ounces for the life-of-mine.  This includes ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce.  

 

This is an expensive financing arrangement as this silver is priced at approximately $15 per ounce.

 

Trevali’s RP 2.0 has assumed a $24.47 per silver ounce (with silver currently trading around $23.60 per ounce).