Trevali Resources Corp.

Trevali Resources Corp.

October 06, 2010 09:00 ET

Trevali Commences Trading on Toronto Stock Exchange; Appoints Dr. Anthony Holler as Chairman

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) - Trevali Resources Corp. ("Trevali" or the "Company") (CNSX:TV)(PINK SHEETS:TREVF)(FRANKFURT:4TI) is pleased to announce that its common shares will commence trading on the Toronto Stock Exchange ("TSX"), effective at market opening, on October 7, 2010 under the continued symbol "TV". As a consequence, the Company's common shares will be de-listed from the Canadian National Stock Exchange (CNSX) upon the commencement of trading on the TSX. The Company's common shares will continue to trade on the US-OTCBB Pinksheets (Symbol "TREVF") and Frankfurt Stock Exchange (Symbol "4TI").

"We are very proud to see Trevali graduate to the TSX, Canada's senior equity market," stated Dr. Mark Cruise, president and chief executive officer of the Company. "In the coming months, as we advance our Santander zinc-lead-silver mine project towards production with partners Glencore International, we look forward to delivering strong shareholder value through planned operating revenues as well as expansion of the current resource base."

Trevali is also pleased to announce it has appointed Dr. Anthony Holler as Chairman. Dr. Holler is a highly respected executive with extensive experience in the M&A (mergers and acquisitions) field. Dr. Holler founded and was the chief executive officer of ID Biomedical Corp., and most recently was chairman and a director of Corriente Resources Inc.

"I am very pleased to be joining the board of Trevali as its Chairman," said Dr. Holler. "Based on my experience with similar business situations, I would say that Trevali represents a tremendous opportunity to create significant shareholder value. As Chairman of Corriente Resources, we developed a plan to enhance the value of the company by advancing our copper/gold property through bankable feasibility. We were able to build significant shareholder value, and ultimately decided to capitalize on this value by selling the company for about $700 million. Similarly, at ID Biomedical where I was CEO, we created value by moving our products from R&D through the development and commercialization phases. Again, we decided to capitalize on the value of the assets we developed by selling the company to GlaxoSmithKline for approximately $1.7 billion. I believe that my experience can be beneficial to Trevali at its current stage of development. This Company has all the ingredients for success; an experienced management team, a valuable silver/zinc asset and a senior partner in Glencore who will operate the mine. I look forward to assisting management in developing Trevali's attractive assets and maximizing shareholder value."

"We are excited to welcome Tony to the role of Chairman at Trevali. His proven business expertise in strategic planning and the creation of significant shareholder value will be very helpful to Trevali as we progress towards production," commented Mark Cruise.

Trevali recently executed its definitive legal agreement with Glencore International AG's Peruvian subsidiary, Empresa Minera Los Quenuales S.A., for the development, construction and operation of Trevali's 100%-owned Santander zinc-lead-silver mine project in Peru. The agreement covers all aspects of the future development of the Santander Mine Project including the following key terms:

  • Trevali retains 100% ownership of the Santander Project.

  • Glencore to provide, construct and operate a modern, efficient, 2,000-tonne-per-day mill and flotation plant to produce saleable zinc and lead-silver concentrates.

  • Glencore to provide their world-class project management and operational expertise on a contractor-basis to design, develop and operate the future mine using an anticipated combination of open-pit and underground mining techniques thereby enabling the Santander project to reach and maintain optimum concentrate product levels in an efficient manner.

  • Trevali will acquire the plant and associated infrastructure over a 4-year period following commercial concentrate production thereby securing full ownership of the new mill and processing complex. Trevali has the right, at any time, to pre-pay the outstanding cost of the plant subject to payment plus 10%. In the unlikely event that Trevali defaults, inter alia, in its financial commitments Glencore will have the option to temporarily hold title to the Santander project and have the right to operate the mine for the mutual benefit of both Glencore and Trevali until it has recovered any outstanding payment, at which time title will revert back to Trevali. During this period Glencore cannot assign, charge or in anyway impair the Santander project but must run the operation for the benefit of both parties.

  • Trevali will provide their proven exploration, permitting and community relations expertise on behalf of the partnership in order to fast-track development of the project and expand the known resources that remain open.

  • Trevali has secured a Life-Of-Mine concentrate off-take agreement whereby Glencore will buy 100% of the Santander mine production at Benchmark terms.

The Santander zinc-lead-silver mine project is located approximately 215 km by road from Lima, in the western extent of Peru's world-class Central Polymetallic Belt. Site infrastructure includes a fully refurbished 200-man camp and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date. Mineralization remains open in all three Magistral deposits, the Puajanca zone and the past-producing Santander Pipe, and numerous high-priority targets remain to be tested.

Results from the successful 2009-2010 resource expansion, definition and geotechnical drilling program is currently being incorporated into an updated, independent N.I. 43-101 resource estimate that is anticipated in Q4 of this year.

Additionally, the Company also announces the resignation of Mr. Carlos Ballon as Chairman and Director.

Further, the Company, pursuant to its 2007 incentive stock option plan, has granted incentive stock options to certain directors, officers and consultants, allowing them to purchase up to a total of 700,000 common shares in the capital stock of the Company. The options are exercisable at a price of $1.37 per share for a period of two years ending October 6, 2012.

About Glencore International A.G.

The Glencore Group of Companies ("Glencore") is one of the world's largest suppliers of commodities and raw materials to industrial consumers. Customers around the world, in industries such as automotive, power generation, steel production and food processing, rely upon Glencore's established global network of operations as a source of Metals and Minerals, Crude Oil and Oil Products, Coal and Agricultural Products. These commodities originate either from Glencore's owned production assets, are secured from third parties, or benefit from the refining, processing or marketing expertise of Glencore. The Group also provides financing, logistics and other supply chain services to producers and consumers of commodities.

Glencore, founded in 1974, is a privately held Group owned by its management and employees. Headquartered in Baar, Switzerland, Glencore employs over 2,000 people in its global marketing operations in some 50 offices in over 40 countries. In its industrial operations, Glencore employs over 50,000 people at 15 plants in 13 countries. On a consolidated basis, Glencore reported turnover for the 2009 fiscal year of US$106.4 billion, with total assets of US$66.3 billion and Total Glencore Shareholders' Funds of US$16.7 billion as of December 31, 2009. Glencore also recently reported First-Half-2010 revenues of US$70 billion and net income of US$1.56 billion.

About Trevali Resources Corp.

The Company in conjunction with its partner, Glencore International A.G., has entered into a definitive development agreement for the Santander silver-lead-zinc project in west-central Peru that will 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.

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 ( and to Canadian regulatory filings on SEDAR at

On Behalf of the Board of Directors of

"Mark D. Cruise" (signed)
Mark D. Cruise, President

The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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