Trevali Mining Corporation (OTCMKTS:TREVF) is in a range after signing a stock purchase agreement with Cerro De Pasco Resources Inc. (CDPR).
On Monday, TREVF stock went down 1.45% to close at $0.17 with more than 1.16 million shares, compared to its average volume of 310K shares. The stock has moved within a range of $0.1505 – 0.1750 after opening the trade at $0.1750.
Sale of Santander Mine and Share Consolidation
According to the terms of the deal, Trevali will sell the Santander Mine located in Peru to CDORby selling shares it holds in Tervali Peru S.A.C.the agreement terms stipulate that Trevali will in return get 10 million Cerro De Pasco common shares, cash of CD$1 million and a 1% Net Smelter Return Royalties on the part of the Santander mine except for the areas where there is a defined Mineral Resource.
The common shares that Trevali will receive from CDPR represent around3.5% of Cerro De Pasco’s outstanding and issued common shares after the transaction closes.CEO RicusGrimbeek said that the Santander Mine divesture is in line with the company’s disciplined capital allocation strategy focusing on investment in the RP2.0 project located at Rosh Pinah and corporate debt elimination. So in the coming weeks, investors should keep an eye on TREVF.
Ricus Grimbeek, President and CEO commented, “The divestiture of Santander is consistent with our disciplined capital allocation strategy of focusing on corporate debt reduction and investing in the RP2.0 expansion project at Rosh Pinah. We thank the team at Santander for their commitment and dedication and we wish them continued success as part of Cerro De Pasco. We will work closely with the team to ensure a smooth transition and look forward to working with Cerro De Pasco to continue to add value at Santander.”
TREVF stock is trading above the 50-Day and 200-Day Moving averages of $0.16 and $0.17 respectively. However, the stock is trading below the 20-Day moving average of $0.18. The stock is up 8% over the past month.