Trevali Mining Corporation $417.8 Million Acquisition of a portfolio of zinc assets from Glencore PLC


Aird & Berlis, Hamlins, Cassels Brock & Blackwell, Estudio Echecopar (Baker & Mckenzie), Conyers Dill & Pearman, H.D. Bossau & Co, SCP Yanogo Bobson, Fasken Martineau DuMoulin, Philippi Prietocarrizosa Ferrero DU & Uría, Engling, Stritter & Partners, Taylors (Walkers), McCarthy Tétrault and Rebaza, Alcázar & De Las Casas advised on the deal

Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) announces it has completed the acquisition (the “Transaction”) of a portfolio of zinc assets from Glencore PLC (“Glencore”), and certain of its subsidiaries, including an 80% interest in the Rosh Pinah mine in Namibia (“Rosh Pinah”), a 90% interest in the Perkoa mine in Burkina Faso (“Perkoa”), an effective 39% interest in the Gergarub project in Namibia, an option to acquire 100% interest in the Heath Steele project in Canada including certain related exploration properties and assets (together, the “Assets”). The aggregate purchase price for the Assets of US$417.86 million is comprised of cash consideration of US$245.21 million (the “ Cash Consideration”), and an aggregate of 193,432,310 common shares in the capital of the Company (“ Common Shares”) at a deemed price of C$1.20 per Common Share (the “Share Consideration”).

The Cash Consideration was funded through a combination of: (i) the proceeds of the previously announced bought deal private placement (the “ Subscription Receipt Offering”) of subscription receipts (“Subscription Receipts”) conducted by a syndicate of underwriters led by BMO Capital Markets and including Scotia Capital Inc., TD Securities Inc., Eight Capital, National Bank Financial Inc., Paradigm Capital Inc., Cormark Securities Inc., GMP Securities L.P., Haywood Securities Inc., and Raymond James Ltd. (collectively, the “ Underwriters”) and (ii) advances under a US$160-million senior secured term loan (the “Term Facility”) and a US$30-million senior secured revolving working capital loan (the “ Revolving Facility” and together with the Term Facility, the “Facility”), in each case made available to the Company by The Bank of Nova Scotia and SG Americas Securities LLC, as co-lead arrangers and joint bookrunners, and The Bank of Nova Scotia, Société Générale, Export Development Canada, HSBC Bank Canada and The Toronto-Dominion Bank, as lenders. The Facility bears interest on a sliding scale: (i) at a rate of LIBOR plus between 3.00 percent to 4.00 percent or (ii) at a base rate plus between 2.00 percent to 3.00 percent and includes standard and customary finance terms and conditions including with respect to fees, representations, warranties, covenants and conditions precedent to additional draws under the Revolving Facility. 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 S.A., owing to Glencore and its affiliates.

As part of the Transaction and as announced by the Company on March 29, 2017 (see news release TV-NR-17-07) a total of 220,455,000 Subscription Receipts were issued, including 28,755,000 Subscription Receipts as a result of the Underwriters’ full exercise of an underwriters’ option, for gross proceeds of C$264,546,000, of which C$53.91 million was used to redeem Trevali’s 12.5% senior secured notes due May 30, 2019 in full. The Subscription Receipts were distributed by way of a private placement in each of the provinces and territories of Canada, in the United States pursuant to applicable exemptions, and in certain international jurisdictions pursuant to the Subscription Receipt Offering. As of August 31, 2017, the escrow release conditions for the Subscription Receipt Offering have been satisfied and the Subscription Receipts will convert into 220,455,000 Common Shares with no further action on the part of the holders of the Subscription Receipts.

In Canada, Aird & Berlis advised Trevali Mining Corporation with Tom Fenton (Picture), Peter Czegledy, Sherri Altshuler, Melanie Cole, Aaron Collins, Stephen Zolf, Christopher Berrigan, Daniel Everall Worndl, Aaron Bains, Cristina Senese, Pavle Levkovic, Amy Marcen-Gaudaur and Timothy Jones.

In London, Hamlins advised Trevali Mining Corporation with Daniel Bellau, Aselle Djumabaeva-Wood, Charles Bezzant, Richard Pull and Neil Thomas.

Cassels Brock & Blackwell advised Trevali Mining Corporation Special Committee with Jennifer Traub, Jennifer Hansen and Alexis Bowie.

In Peru, Estudio Echecopar (Baker & Mckenzie) advised Trevali Mining Corporation in connection to the financing of the transaction with Valentin Paniagua, Rafael Picasso, Ina Drago, Katherine Zapata and Cynthia Delgado de la Flor.

In Canada Cassels Brock & Blackwell advised advised Trevali Mining Corporation in connection to the financing of the transaction with David Budd, Carla Potter, Jenna Clark and Hilary Fender.

In London, Hamlins advised Trevali Mining Corporation in connection to the financing of the transaction with Daniel Bellau, Aselle Djumabaeva–Wood and Richard Pull.

Conyers Dill & Pearman advised Trevali Mining Corporation in connection to the financing of the transaction with Chiara T. Nannini. and Jennifer Panchaud.

H.D. Bossau & Co advised Trevali Mining Corporation in connection to the financing of the transaction with Hanno Bossau.

SCP Yanogo Bobson advised Trevali Mining Corporation in connection to the financing of the transaction Bobson Coulibaly.

Fasken Martineau DuMoulin advised The Bank of Nova Scotia, Societé Generale, Export Development Canada, HSBC Canada and Toronto Dominion Bank with Thomas Meagher, Ashen Jugoo, Ndumiso Dyantyi, Jane Wang, Jay Choi Hlatse Nkune, Jason McMurtrie and Keara Barton.

In Perù, Philippi Prietocarrizosa Ferrero DU & Uría advised The Bank of Nova Scotia, Societé Generale, Export Development Canada, HSBC Canada and Toronto Dominion Bank with Rafael Puiggros, Hernán Torres, Doris Nicho, Luciana Carpio–Rivero and Sergio Cueva.

Engling, Stritter & Partners advised The Bank of Nova Scotia, Societé Generale, Export Development Canada, HSBC Canada and Toronto Dominion Bank with Hans-Bruno Gerdes and Axel Stritter.

Taylors in association with Walkers advised The Bank of Nova Scotia, Societé Generale, Export Development Canada, HSBC Canada and Toronto Dominion Bank with Jonathan Betts and Benjamin Green.

Patricia M-L. Sawadogo advised The Bank of Nova Scotia, Societé Generale, Export Development Canada, HSBC Canada and Toronto Dominion Bank in Burkina Faso.

McCarthy Tétrault LLP advised Glencore PLC with Roger Taplin, Adam Taylor, Christopher Langdon, Mark McEwan and Steven Molnar.

In Perù, Rebaza, Alcázar & De Las Casas advised Glencore PLC with Luis Miguel Elías, María Fernanda Gadea and Bettina Gorra.

Involved fees earner: Patricia M-L. Sawadogo – Patricia M-L. Sawadogo; Hans-Bruno Gerdes – Engling, Stritter & Partners; Bobson Coulibaly – SCP Yanogo Bobson; Hanno Bossau – H.D. Bossau & Co; Daniel Bellau – Hamlins; Richard Pull – Hamlins; Aselle Djumabaeva-Wood – Hamlins; Charles Bezzant – Hamlins; Neil Thomas – Hamlins; Aselle Djumabaeva-Wood – Hamlins; Thomas Fenton – Aird & Berlis LLP; Peter Czegledy – Aird & Berlis LLP; Sherri M. Altshuler – Aird & Berlis LLP; Melanie Cole – Aird & Berlis LLP; Daniel Everall – Aird & Berlis LLP; Aarondeep Bains – Aird & Berlis LLP; Aaron Collins – Aird & Berlis LLP; Christopher Berrigan – Aird & Berlis LLP; Stephen Zolf – Aird & Berlis LLP; Jennifer Traub – Cassels Brock & Blackwell LLP; Jen Hansen – Cassels Brock & Blackwell LLP; Alexis Bowie – Cassels Brock & Blackwell LLP; David Budd – Cassels Brock & Blackwell LLP; Carla Potter – Cassels Brock & Blackwell LLP; Jenna Clark – Cassels Brock & Blackwell LLP; Rafael Puiggros – Philippi Prietocarrizosa Ferrero DU & Uría; Luciana Carpio–Rivero D’Angelo – Philippi Prietocarrizosa Ferrero DU & Uría; Hernán Torres Álvarez – Philippi Prietocarrizosa Ferrero DU & Uría; Sergio Cueva Chauca – Philippi Prietocarrizosa Ferrero DU & Uría; Doris Nicho – Philippi Prietocarrizosa Ferrero DU & Uría; Luis Miguel Elías – Rebaza Alcazar & De Las Casas Abogados Financieros; María Fernanda Gadea – Rebaza Alcazar & De Las Casas Abogados Financieros; Bettina Gorra – Rebaza Alcazar & De Las Casas Abogados Financieros; Jonathan Betts – Walkers Global; Benjamin Green – Walkers Global; Chiara Nannini – Conyers Dill & Pearman; Jennifer Panchaud – Conyers Dill & Pearman; Roger Taplin – McCarthy Tétrault; Adam Taylor – McCarthy Tétrault; Mark McEwan – McCarthy Tétrault; Steven Molnar – McCarthy Tétrault; Christopher Langdon – McCarthy Tétrault; Thomas Meagher – Fasken Martineau; Ashen Jugoo – Fasken Martineau; Ndumiso Dyantyi – Fasken Martineau; Jay Choi – Fasken Martineau; Jane Wang – Fasken Martineau; Valentin Paniagua – Baker & McKenzie; Ina Maria Drago – Baker & McKenzie; Rafael Picasso – Baker & McKenzie; Katherine Zapata – Baker & McKenzie;

Law Firms: Patricia M-L. Sawadogo; Engling, Stritter & Partners; SCP Yanogo Bobson; H.D. Bossau & Co; Hamlins; Aird & Berlis LLP; Cassels Brock & Blackwell LLP; Philippi Prietocarrizosa Ferrero DU & Uría; Rebaza Alcazar & De Las Casas Abogados Financieros; Walkers Global; Conyers Dill & Pearman; McCarthy Tétrault; Fasken Martineau; Baker & McKenzie;

Clients: Glencore; HSBC; Société Générale; Scotiabank; Export Development Canada; TD Bank; Trevali Mining Corporation; Trevali Mining Corporation Special Committee;

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Author: Ambrogio Visconti