Trevali receives proceeds of $2,032,267 from warrant exercise
October 8, 2009
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) has received a total $2,032,267 from the exercise of 3,331,586 warrants that expired on September 18, 2009. The finances will be used for working capital and exploration and development of the Santander silver-lead-zinc mine project located in the Central Peruvian Polymetallic Belt.
The Company has also settled an outstanding loan of $1,000,000 by issuing from its treasury 1,470,588 units at a deemed price of $0.68 per unit, each unit consisting of one common share and one half-warrant. One whole warrant will entitle the holder to purchase one additional common share of the Company at any time up to the close of business two years from the date of issuance at a price of $1.00 per share. The securities issued pursuant to the debt settlement are subject to a four-month hold period under Canadian securities laws.
The Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima, in the western extent of Peru's world-class Central Mineral Belt. The mine previously operated from 1958-1992 targeting a single Carbonate Replacement Deposit--type pipe and manto structure, the Santander Orebody.
Substantial site infrastructure includes a fully refurbished 200-man camp and associated support facilities, and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Santander project and the considerable existing infrastructure form a highly strategic asset in this mining district. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date.
About Trevali Resources Corp.
The Company in conjunction with partner Glencore International A.G. has entered into a definitive development agreement for the Santander project that will see Glencore provide and operate 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 for 100% of Santander project 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 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 (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
TREVALI RESOURCES CORP.
"Mark D. Cruise" (signed)
Mark D. Cruise, President
Contact Information: Steve Stakiw, Manager -- Corporate Communications
Phone: (604) 488-1661 / Fax: (604) 408-7499