Under the agreement, Trevali will issue 16,667,000 common shares at a price of $0.60 per common share. Further, the agreement has offered Dundee an option to acquire additional 2,500,000 common shares investing $1.5m.
The option matures two days before the closing of the agreement scheduled on 11 June 2013.
Trevali has stated that the company would use the funds to finance operations at its Santander Project in Peru and New Brunswick projects in Canada, besides facilitating its working capital.
Commenting on the developments, Trevali Mining president and CEO Mark Cruise stated that with the company inching towards final stages of construction at its Santander mine, it is seeking funds to facilitate ongoing commissioning and upcoming production ramp-up phases.
"Due to the unforeseen Santander plant construction delays encountered earlier this year this necessary financing will provide working capital for the operation as it transitions to full-production during this Summer. The Company anticipates initial production
from the plant to commence over the next few weeks," added Cruise.
"The recently announced initial funding facility from RMB is ear-marked for the development of our Bathurst Mine Operations in New Brunswick."
Meanwhile, the company is looking to ramp up production rate at Santander zinc-lead-silver mine 2,000-tonnes-per-day by mid-year 2013.
