Trevali Mining Corporation (TSX:TV) (OTCQX:TREVF) (LMA:TV) (FRANKFURT:4TI) announces that it has closed an agreement selling its wholly-owned Tingo run-of-river hydroelectric station in Peru to Volcan Compania Minera S.A. for USD$13.5 million.
Through the Agreement the Company has monetized Tingo, a non-producing, non-core asset to its main business of mine development and metal production, and has strengthened its balance sheet.
Trevali has a power purchase agreement in place for its Santander Mine from SN Power at a price of $0.06 per kilowatt hour (plus transmission charges of $0.02 per kilowatt hour) off the Peruvian National Energy Grid. Trevali also retains a long-term agreement with Volcan for power off-take rights, once the current PPA expires on December 31st, 2016, for future power generation from Tingo maintaining the same Peruvian industry standard price conditions. Trevali has also executed a transmission services agreement to use the existing transmission line from the National Grid to the Santander Mine and reserve use for the future transmission line that will connect the new Tingo hydroelectric station to Santander.
“The sale of our Tingo hydroelectric station provides Trevali with practical monetization of a non-core asset and will boost the Company’s working capital position,” stated Dr. Mark Cruise, Trevali’s President and CEO. “Given the competitive strategic power agreement we have in place and Management’s focus on mining operations, it was prudent to strengthen our balance sheet as we continue to optimize metal production from our Santander Mine in Peru and advance our Caribou Mine in New Brunswick towards operation.”
The Company also announces that the independent technical report on the Preliminary Economic Assessment for the Caribou project in New Brunswick has been filed on SEDAR and is available on the Company’s website.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused, base metals mining company with one producing operation currently in Peru and an advanced-stage mine under development in Canada.
In Peru, the Company is actively producing zinc and lead-silver concentrates from its Santander mine and 2,000-tonne-per-day metallurgical plant.
In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat deposit all located in the Bathurst Mining Camp of northern New Brunswick. The Company is currently advancing its 3,000-tonne-per-day Caribou Mill Complex and mine towards scheduled 2015 production.
All of the Company’s deposits remain open for expansion.
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