Trevali Mining Corporation (TSX:TV,OTCQX:TREVF,FRANKFURT:4TI) entered into a definitive combination agreement to acquire Maple Minerals Corporation, a private New Brunswick incorporated company, that owns the Caribou milling and mine complex located in the Bathurst Mining Camp of northern New Brunswick.
As quoted in the press release:
• Provides Trevali with a modern 3,000 tonne-per-day concentrate processing plant including a metallurgical and geochemical laboratory and permitted tailings treatment facility (Figure 1).
• Addition of a former producing mine with significant resources that can be rapidly and cost effectively brought on-line.
• Highly preferable from a social and sustainability perspective – near-term creation of an additional 120-150 full-time employment positions making Trevali one of the larger employers in northern New Brunswick and utilization of a working brown-field industrial site versus a green-field site.
• Very significant financial, technical and timing de-risk versus permitting and building a new stand-alone Milling complex for the Company’s Halfmile and Stratmat deposits.
• Due to superior quality of the Halfmile-Stratmat mineralization (coarse with good metallurgical characteristics) modeling of the mill grinding circuit indicates that it is readily modifiable to produce saleable zinc, lead and copper concentrates.
• Deposit remains open for expansion at depth and along strike – deepest underground intercept to date returned 34.77 metres at 7.22% zinc, 2.69% lead, 0.25% copper, 76.8 g/t silver and 2.19 g/t gold.
• Potential to provide a smooth transition and minimize production disruptions at Halfmile as Xstrata’s Brunswick 12 Mine closes in 2013.
• Will enable long-term mine plan optimization and operational efficiencies at the Halfmile and Stratmat deposits.
• Includes an environmental closure bond of $4.67 million dollars currently in place.
• Near optimal timing from a production scheduling perspective for the Company to benefit from predicted significant zinc deficits as Brunswick-12 shuts-down followed by closures of several other globally significant marque zinc producers in Europe, Africa and Austral-Asia.
• Further strengthens and confirms Trevali’s position as an up-and-coming zinc producer.