Trevali Mining to price C$40 million of convertibles due 2016

By Angela McDaniels

Tacoma, Wash., Sept. 21 - Trevali Mining Corp. plans to price C$40 million of five-year convertible senior debentures at par, according to a company news release.

There will be a C$6 million over-allotment option.

The syndicate of underwriters is led by Raymond James Ltd. and includes GMP Securities LP, Scotia Capital Inc., M Partners Inc. and Paradigm Capital Inc.

The coupon and the conversion price have not been set.

The conversion price will be decreased by 500 basis points if the company does not receive by Dec. 31 all of the permits needed to begin mining its Halfmile property in New Brunswick. It will be decreased by another 500 bps if the company does not receive by Aug. 31, 2012 all the permits needed to begin mining and milling at its Santander property in Peru.

Beginning Oct. 31, 2014, the convertibles will be callable at par if the weighted average trading price of the company's common shares is at least 145% of the conversion price for 20 consecutive trading days.

The offering is expected to close Oct. 13.

The proceeds will be used on the company's mining properties, to repay a US$8.4 million loan to Cardero Resource Corp. and for general working capital.

Trevali mines for zinc, lead, silver and copper. Its headquarters are in Vancouver, B.C.

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