ASX-listed Trevali Mining reports its majority-owned subsidiary Rosh Pinah Zinc in Namibia will undertake a partial share buy-back of issued RPZC shares under agreements with its Namibian shareholders.
Rosh Pinah Zinc (RPZC) will acquire issued shares tendered under the agreements for an aggregate amount of approximately NA$291,000,000 (approximately USD$24,260,000).
The tendered shares will subsequently be cancelled by RPZC’s treasury.
Following the cancellation of the tendered shares, Trevali’s effective beneficial ownership in RPZC will increase from approximately 80% to approximately 90%.
“We welcome this opportunity to strengthen our involvement in Rosh Pinah, which globally is an upper-quartile zinc deposit in terms of grade and tonnage,” states Dr. Mark Cruise, Trevali’s president and CEO.
“Following our recent mineral reserve and resource updates at Rosh Pinah, which remains open for expansion, we have commissioned an independent engineering study examining potential production optionality given the deposit’s almost 50-year history of resource-reserve replacement and growth.
“Trevali views its operations and investment in Namibia as a long-term relationship to the mutual benefit of all groups involved.”
Rosh Pinah remains on-track for its 2018 production guidance(1) of 105-115 million pounds of payable zinc, 5.7-6.0 million pounds payable lead and 123,000-129,000 oz of payable silver, on a 100% basis.
Key strategic improvements started in late-2017 produced significant improvements in overall performance and has positioned the site well for the year with increasing metal output planned for the second half of 2018 as higher-grade stopes are sequenced.
Trevali is a zinc-focused, base metals company with four mines: the wholly-owned Santander mine in Peru, the wholly-owned Caribou mine in the Bathurst Mining Camp of northern New Brunswick, its 80% owned Rosh Pinah mine in Namibia and its 90% owned Perkoa mine in Burkina Faso.