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Trevali to acquire Maple Minerals

Vancouver-based Trevali Mining Corp. (TSX: TV) this morning announced an agreement to acquire Maple Minerals Corp. which owns the Caribou milling and mine complex in the Bathurst Mining Camp of northern New Brunswick.
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geography, metal, mining, New Brunswick, Trevali to acquire Maple Minerals

Vancouver-based Trevali Mining Corp. (TSX: TV) this morning announced an agreement to acquire Maple Minerals Corp. which owns the Caribou milling and mine complex in the Bathurst Mining Camp of northern New Brunswick.

The transaction would see former shareholders of Maple acquire Trevali common shares and common share purchase warrants. Based on the closing price of Trevali stock on May 11, the transaction implies an acquisition price of approximately $23.8 million for Maple.

“We are extremely pleased to enter into a definitive agreement to acquire this highly strategic asset,” said CEO Mark Cruise, Trevali president and CEO.

Cruise said the acquisition gives Trevali a “substantially cheaper and faster milling solution” and should “strategically position Trevali… in light of anticipated near-term global zinc deficits.”

Trevali said that, among other things, the deal will give Trevali:

  • a modern 3,000 tonne-per-day concentrate processing plant including a metallurgical and geochemical laboratory and permitted tailings treatment facility;
  • a former producing mine with significant resources that can be rapidly and cost-effectively brought on-line; and
  • 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.

Trevali said it is “optimistic” that the transaction will close “over the course of the next several months.”

As of press time, Trevali’s stock price was down more than 5% to $1.04.

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@JennyWagler_BIV