Trevali Mining has received credit approval from Standard Bank Namibia and Standard Bank of South Africa for a Senior Secured Financing Facility of N$1.86 billion (US$110 million) to fund the expansion of the Company’s Rosh Pinah Mine in Namibia.
“Project financing for the Rosh Pinah expansion has been steadily progressing for the past several months, and we are pleased to report the confidence in the Rosh Pinah operation and expansion that is reflected by Standard Bank’s credit approval and strong endorsement of the RP2.0 project,” said Ricus Grimbeek, President and CEO of Trevali.
“The expansion at Rosh Pinah is the primary focus for Trevali in the coming years and we look forward to working with Standard Bank as a supportive lender that has intimate knowledge about the Rosh Pinah Mine, the expansion plan, and long-term operating success that has been achieved since mining began in 1969.”
Closing of the Senior Secured Financing Facility is subject to a number of conditions, including the negotiation and settlement of definitive loan facility and security documentation, the execution and delivery of definitive documentation in respect of the other elements of the comprehensive financing package, including an intercreditor agreement between Standard Bank and the various subordinated secured lenders, and the consent of and release of existing security by Trevali’s existing senior secured lenders.
The credit approval follows the execution of a mandate agreement with Standard Bank in March of this year and completion of legal and technical due diligence of the Rosh Pinah Mine and the RP2.0 project, including a site visit to the operation.
This comes as Trevali is continuing to pursue the arrangement of an Export Credit Agency (ECA) backed equipment finance facility, which may increase the amount available under the Senior Secured Financing Facility by up to N$336 million (US$20-million).
RP2.0 will increase Rosh Pinah’s throughput from 0.7-million tons a year to 1.3-million tons a year through the modification of the processing plant, construction of a paste fill plant, and development of a dedicated portal and ramp to the WF3 deposit.
