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HALIFAX, NS (MINEWEB) - In an all share deal worth some C$20 million Trevali Mining (TSX: TV) will acquire the Caribou zinc-lead mine and mill in NewBrunswick's Bathurst mining camp, giving it a place to eventuallysend ore from its nearby Halfmile zinc-lead mine that just startedproduction. "Simply put, it provides Trevali with a substantially cheaper andfaster milling solution with minimal production disruption," MarkCruise, Trevali president and CEO, said in a prepared statement. Trevali's problem: it faces the impending shutdown of Xstrata'sBrunswick 12 mill in New Brusnwick, where since starting up itsHalfmile zinc-lead mine earlier this year it has sent ore forprocessing. Now, when Brunswick does wind down, Trevali will have somewhereelse to process Halfmile ore in the form of the Caribou mill, intowhich Trevali said a previous operator had invested between C$100-to C$200-million during the mid-2000s. The mine and mill operatedfor a couple years but was shutdown amidst financial crisis in2008. Trevali also gets a potential new source of ore in the Cariboudeposit that comes along with the mill acquisition from MapleMinerals, a private-company. The Caribou deposit holds 3.8 million tonnes @ 7.5 percent zinc,3.2 percent lead and 92 g/t silver in indicated resources and aboutas much again at similar grades in inferred resources. Feed fromCaribou could be "fast tracked" to the mill, Trevali said, andthere may be a copper upside that has so far gone untapped. Trevali said that a C$4.7 million environmental closure bond isalready in place for the Caribou mill and mine and comes with theacquisition. Per a definitive agreement on the Caribou acquisition, Trevalisaid it will pay Maple Minerals in equity: 20 million shares and 4million share purchase warrants @ C$2.00. That puts the immediatevalue of the transaction at a little over C$20 million. Afterclosing the deal, Maple shareholders will own about 11 percent ofTrevali stock. Trevali also operates the Santander zinc-lead-silver project inPeru, where it is ramping up to production following receipt ofenvironmental permits in late April. SUBSCRIBE to Mineweb.com's free daily newsletter now. The e-commerce company in China offers quality products such as China solar pv cable , China Crane pendant cables, and more. For more , please visit mining power cable today!
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