UPDATE 1-Glencore to acquire stake in Canadian miner Trevali
March 1 (Reuters) - Trevali Mining Corp said on Thursday that commodities trader Glencore International Plc will acquire a 7.8 percent stake in Trevali through a private placement deal worth $18 million.
Vancouver, British Columbia-based Trevali, which owns assets in Canada and Peru, said the proceeds from the deal will be used to advance its zinc-lead Santander mine project in Peru and to provide working capital for its Halfmile zinc-lead mine in New Brunswick that is presently under production ramp-up.
In addition, Glencore also controls a $2-million convertible debenture facility from Trevali and an associate of the trader also owns common shares and common share purchase warrants which together with Glencore's holdings represent about 12.45 percent of Trevali's common shares on a partially diluted basis.
Trevali also announced that Chris Eskdale of Glencore will join its board, on closing of the private placement deal.