The move comes after Trevali said it has filed for creditor protection under the Companies Creditors Arrangement Act (CCAA). In an August 19, 2022, press release, the company said it had made the application in the British Columbia Supreme Court.
The company said that as a result of the filing, the common shares may be delisted on the TSX as well as the Lima Stock Exchange, OTCQX and Frankfurt Stock Exchange in due course.
Trevali shares tumbled recently after the company reported lower-than-expected zinc production in the second quarter of 2022 due to operational challenges at mines in West African and Canada.
The company said operations at its Perkoa zinc mine in Burkina Faso remain suspended following the tragic April 16, 2022, flooding event that resulted in eight fatalities and the halting of mining and milling operations. On Monday, Burkina Faso news sources were reporting that two Trevali executives, including the mine general manager, were arrested in the country due to the flooding.
It is not clear what the executives have been charged with.
Following a review of its operations at the Caribou Mine in New Brunswick, the company has suspended operations there too. It attributed the move to operational and financial challenges. “This was not an action taken lightly and we are aware of the uncertainty created and the impacts this decision has on the community and our team,’’ said Trevali President and CEO Ricus Grimbeek.
The mine will be put on a care and maintenance program immediately t- preserve the value of the mineral resource and mine assets and to protect the environment in the vicinity of the mine.
“As previously indicated on August 15, 2022, in its second quarter results filing, the company did not make a mandatory prepayment of approximately $7.5 million on its senior secured revolving credit facility when payment came due on August 17, 2022,’’ Trevali said in the release.
“Following the receipt of the initial order, Trevali said it intends to continue to operate through the CCAA proceedings,” the company said. “Management of Trevali is expected to remain responsible for the day-to-day operations, under the general oversight of the monitor.’’
Trevali is a Vancouver-based mining company. The bulk of its revenue has previously been generated from base metals mining at the 90%-owned Perkoa Mine, the 90%-owned Rosh Pinah Mine, and the wholly-owned Caribou zinc-lead-silver mine in New Brunswick. Trevali also owns the Halfmile and Stratmat properties as well as the Restigouche deposit in New Brunswick. The portfolion includes the Ruttan mine in northern Manitoba. As well, Trevali owns an effective 44% interest in the Gergarub project in Namibia.