Trevali Mining Corporation has sold its wholly-owned Tingo run-of-river hydroelectric station in Peru to Volcan Compañía Minera S.A. for USD$13.5 million.
Under the terms of the sale, Trevali retains a long-term agreement with Volcan for power off-take rights, once a current PPA expires on 31 December 2016, for future power generation from Tingo. Trevali has also reached an agreement to use the existing transmission line from the National Grid to its Santander Mine and reserve use for the future transmission line that will connect the new Tingo hydroelectric station to Santander.
"The sale of our Tingo hydroelectric station provides Trevali with practical monetization of a non-core asset and will boost the Company’s working capital position," said Dr. Mark Cruise, Trevali’s President and CEO. "Given the competitive strategic power agreement we have in place and Management’s focus on mining operations, it was prudent to strengthen our balance sheet as we continue to optimize metal production from our Santander Mine in Peru and advance our Caribou Mine in New Brunswick towards operation."
