Trevali confirms charges filed against Perkoa mine operator; stock halted

Perkoa mine site. Credit: Byrnecut

Following receipt of the initial order from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA), trading of Trevali Mining’s (TSX: TV; BVL: TV; OTC: TREVF; Frankfurt: 4TI) shares has now been halted on the Toronto Stock Exchange, and is expected to be halted on other exchanges (Lima, OTC, Frankfurt) as well. As a result of having filed for protection under the CCAA, the company expects its stock to be delisted from trading on these exchanges in due course.

On Friday, Trevali made its application to the B.C. Supreme Court for creditor protection, having reviewed its cash position, scheduled debts, and forecast revenue and expenses. The initial order was subsequently received.

At the time, Trevali said it will continue to fund itself during the CCAA proceedings through cash on hand and cash flow generated at the Rosh Pinah base metals mine in Namibia. However, the Caribou mine in New Brunswick had to be suspended and placed on care and maintenance.

On the same day, it was reported that two executives at its 90% owned Perkoa mine in Burkina Faso have been arrested due to the tragic flooding that trapped and killed eight miners underground earlier this year. This report has now been confirmed by Trevali, and charges relating to this matter have also been filed against the company’s subsidiary and the mine operator.

The incident occurred on April 16, when near Perkoa created a flash flood that entered the mine property and breached the mine’s safety controls, flooding the underground mine and resulting in the deaths of eight workers. Perkoa mining and milling operations remain suspended following the flooding event.

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