Trevali sells stake in Namibia’s Rosh Pinah mine to Appian

Trevali Mining will sell its 90% interest in the Rosh Pinah zinc-lead-silver mine, in Namibia, to Appian Natural Resources Fund III.

The embattled miner has had a difficult financial and operative year. Its president and chief executive Ricus Grimbeek left the company in September following a Burkina Faso court’s verdict that found two employees guilty of involuntary manslaughter.

The convictions followed a tragic incident at the company’s Perkoa mine in the West African nation caused by a flash flood in April, which trapped and killed eight miners.

Together with halting operations at Perkoa, Trevali suspended operations at its Caribou zinc mine in New Brunswick, Canada, due to mounting financial challenges. 

In October, the Vancouver-based company announced its 90%-owned subsidiary in Burkina Faso had filed for liquidation, effectively kicking off a gradual shutdown process that included the disposal of all assets in the country.

Trevali itself filed an application for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) and delisted from the Toronto Stock Exchange shortly after.

CCAA allows companies to restructure and carry on their business while avoiding the “social and economic consequences of bankruptcy.”

The company continues looking for a buyer for its Caribou mine, currently into care and maintenance. The underground operation, about 50 kilometres southwest of Bathurst, produced zinc, lead and silver.

Travail noted it would seek court approval for the transaction with Appian and expects the Rosh Pinah sale to close in the first quarter of 2023.