|August 25, 2010|
Trevali plans $3.75-million private placement financing
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce it has arranged a non-brokered private placement of up to 3,575,000 units at $1.05 per unit for gross proceeds of up to $3,753,750. Each unit is comprised of one common share and one-half a share purchase warrant. Each whole warrant is exercisable at a price of $1.50 per common share for a period of two years from the closing date of the financing.
The warrants will carry a forced conversion feature such that should the common shares of Trevali trade, between the date that is 4 months following the closing date of the placement and the expiry date of the warrant, at or above $1.80 per share for 20 consecutive trading days the Company may (within 30 days of such occurrence) notify warrant holders in writing that the warrants must be exercised within 30 calendar days of the notice -- subsequent to which any unexercised warrants will expire.
All securities issued in the offering will have a hold period in Canada of four months from the closing of the offering.
The Company may pay finder's fees of 5% of the gross proceeds of the offering on the closing of the offering to qualified finders. The finder(s) may elect to receive such fees in cash or, in whole or in part, in units of the Company at a deemed price equal to the offering price. The finder's units will have the same terms as the units of the offering.
The proceeds of the financing will be utilized to advance exploration and development of the Company's Santander silver-lead-zinc mine project in Peru in addition to fulfilling the Company's 18-month budgetary requirements for its Toronto Stock Exchange listing application.
The Company recently received the conditional approval of the Toronto Stock Exchange to list the Company's common shares on the TSX. Listing of the common shares is subject to compliance with all of the TSX requirements, including receipt by the TSX of all required documentation by October 26th, 2010. The company will notify its shareholders as soon as the date for trading on the TSX has been confirmed. Once listed, the Company's common shares will continue to trade under the symbol TV and will be delisted from the Canadian National Stock Exchange (CNSX). The company's shares will continue to trade on the US-OTCBB Pinksheets and Frankfurt stock exchanges.
ABOUT TREVALI RESOURCES CORP.
The Company in conjunction with its prospective partner, Glencore International A.G., ("Glencore") is continuing to work through the terms of a definitive development agreement for the Santander silver-lead-zinc project in west-central Peru that will, if concluded, see Glencore provide and operate on the property, a 2,000-tonne-per-day concentrate plant, undertake mining operations on a 'contractor/toll basis' and enter into a long-term concentrate offtake agreement with the Company for 100% of the Santander project's production at benchmark terms.
It is anticipated that the Company and Glencore will execute final documents imminently.
Additionally, through its wholly owned subsidiary Trevali Renewable Energy Inc., the Company is undertaking a significant upgrade of the Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of the Company are currently listed on the CNSX (symbol TV). For further details on the Company, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
TREVALI RESOURCES CORP.
"Mark D. Cruise" (signed)
Mark D. Cruise, President
Steve Stakiw, Manager -- Corporate Communications
Phone: (604) 488-1661 / Fax: (604) 408-7499
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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