Trevali Mining Corp. said March 29 that it raised C$264.5 million through a previously reported bought-deal private placement of subscription receipts, including the full exercise of an overallotment option by the underwriters.
The offering comprised 220,455,000 subscription receipts, including 28,755,000 subscription receipts under the overallotment option.
Net proceeds are earmarked to help fund a portion of the cash consideration of the US$400 million deal with Glencore Plc announced earlier in the month.
In addition, Trevali secured an amended deal with Glencore to reduce the cash consideration from US$244 million to US$227.4 million. As a result, the share component will increase to an aggregate 193,432,310 common Trevali shares, up from 175,125,304 shares previously.
Under the Glencore agreement, Trevali is acquiring an 80.08% interest in the Rosh Pinah zinc mine in Namibia, an effective 39% interest in the Gergarub zinc project, also in Namibia, and a 90% interest in the Perkoa zinc mine in Burkina Faso.
The deal also includes an option to acquire a 100% interest in the past-producing Heath Steele zinc property in New Brunswick and certain related exploration properties and assets.
The transaction becomes effective April 1 and is expected to close by July 31, subject to all customary closing conditions and Trevali shareholder approval.