VANCOUVER, BC, April 7, 2021 /CNW/ - Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV) (BVL: TV) (OTCQX: TREVF) (Frankfurt: 4TI) is pleased to announce it has entered into a 15 year renewable Power Purchase Agreement (the "PPA") with Emerging Markets Energy Services Company ("EMESCO") for the supply of solar power to Trevali's Rosh Pinah Mine, located in Namibia.
Trevali has committed to achieving an overall Green House Gas ("GHG") emission reduction target of 25% by 2025 from its 2018 baseline. The PPA with EMESCO is anticipated to deliver 30% of Rosh Pinah's power requirements during the life of the agreement and reduce GHG emissions at the Company level by 6%.
EMESCO will be responsible for the design, permitting, financing and implementation of a solar energy system on a neighbouring property at no cost to Trevali. EMESCO will sell the power generated to Trevali at a fixed rate that is expected to reduce energy costs by 18% over the fifteen-year term of the agreement.
EMESCO was chosen based on a variety of factors, including expertise in the field of renewable energy, an understanding of the scope of work required, the ability to execute and deliver on Trevali's requirements, and pricing.
If Trevali makes a positive investment decision on the RP2.0 expansion project, EMESCO will increase the delivery of power to Rosh Pinah to remain at 30% of the mine's annual energy consumption as regulated by the Modified Single Buyer framework in Namibia.
Ricus Grimbeek, President & CEO, stated, "Our sustainability program commits to significant reductions in GHG emissions, and with the signing of this agreement with EMESCO we have taken a major step towards delivering on our commitment by securing renewable energy while also reducing our expected energy costs.
The agreement with EMESCO has been designed to scale with the output of the mine so that when we are ready to make the decision to build the RP2.0 Expansion project, the delivery of power will increase to match our requirements.
We are extremely excited by this partnership at Rosh Pinah and continue to study ways to reduce Trevali's GHG emissions and deliver on this and our other sustainability targets."
Trevali is a global base-metals mining Company headquartered in Vancouver, Canada. The bulk of Trevali's revenue is generated from base-metals mining at its four operational assets: the 90%-owned Perkoa Mine in Burkina Faso, the 90%-owned Rosh Pinah Mine in Namibia, the wholly-owned Caribou Mine in northern New Brunswick, Canada and the wholly-owned Santander Mine in Peru. In addition, Trevali owns the Halfmile and Stratmat Properties and the Restigouche Deposit in New Brunswick, Canada, and the past producing Ruttan Mine in northern Manitoba, Canada. Trevali also owns an effective 44% interest in the Gergarub Project in Namibia, as well as an option to acquire a 100% interest in the Heath Steele deposit located in New Brunswick, Canada.
The shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange (symbol TV), and the Frankfurt Exchange (symbol 4TI). For further details on Trevali, readers are referred to the Company's website (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
EMESCO is a full lifecycle energy services company operating in the renewable energy markets of Southern Africa. EMESCO delivers reliable, cost-effective, clean energy, having implemented 32 MW of Solar PV projects in the region. Emesco develops, implements, operates and maintains renewable energy assets for commercial, industrial and utility scale customers in Namibia.
Cautionary Note Regarding Forward–Looking Information and Statements
This news release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward–looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward–looking statements"). Forward-looking statements are based on the beliefs, expectations and opinions of management of the Company as of the date the statements are published, and the Company assumes no obligation to update any forward–looking statement, except as required by law. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "outlook", "guidance", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology.
Forward–looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events including, but not limited to, statements with respect to the PPA with EMESCO, including the anticipated term of the PPA and the power consumption requirements at the Rosh Pinah mine over this period, the ability of EMESCO to design, permit, finance and implement a solar energy system on a neighbouring property at no cost to the Company, EMESCO's ability to supply the contracted amount of power at a fixed rate over the term of the PPA and the cost savings to the Company as a result of same, the impact of the PPA on the reduction in GHG emissions at Rosh Pinah and the contribution of same to achieving Trevali's broader sustainability targets, the Company's growth strategies and planned development activities, including the potential expansion of the Rosh Pinah mine, the timing and amounts of estimated future production, success of mining activities, environmental risks, and the impact on the Company's operations of current and future actions taken by governmental authorities, counterparties and others to the COVID-19 pandemic. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to the PPA with EMESCO, including that EMESCO may not be able to successfully design, permit, finance and implement the solar energy system in the manner contemplated by the PPA, or at all; that the PPA may not deliver the expected cost savings and GHG emissions reduction; changes in project parameters as plans continue to be refined, including with respect to the RP 2.0 expansion project; future prices of zinc, lead, silver and other minerals and the anticipated sensitivity of our financial performance to such prices; possible variations in ore reserves, grade or recoveries; dependence on key personnel; labour pool constraints; labour disputes; availability of infrastructure required for the development of mining projects; delays or inability to obtain governmental and regulatory approvals for mining operations or financing or in the completion of development or construction activities; counterparty risks; increased operating and capital costs; foreign currency exchange rate fluctuations; operating in foreign jurisdictions with risk of changes to governmental regulation; compliance with governmental decrees and regulations, including any new or ongoing decrees and regulations issued by a governmental authority in response to the COVID-19 pandemic; compliance with environmental laws and regulations; land reclamation and mine closure obligations; challenges to title or ownership interest of our mineral properties; maintaining ongoing social license to operate; impact of climatic conditions on the Company's mining operations; corruption and bribery; compliance with debt covenants; our ability to raise capital; competition in the mining industry; our ability to integrate new acquisitions into our operations; cybersecurity threats; litigation; and other risks of the mining industry including, without limitation, other risks and uncertainties that are more fully described in the Company's annual information form, interim and annual consolidated financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Trevali provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events may differ from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Trevali Mining Corporation
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