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- Trevali Mining Corporation and Trevali Mining (New Brunswick) Ltd.
Trevali Mining Corporation and Trevali Mining (New Brunswick) Ltd.
Trevali Mining Corporation and Trevali Mining (New Brunswick) Ltd., base-metals mining companies focused on the exploration, development, operation, and optimization of mining properties in Canada, Burkina Faso, and Namibia, obtained CCAA protection on August 19. Trevali has seen a drastic deterioration of its financial situation in 2022, including because of a tragic flooding event at its Perkoa Mine in Burkina Faso, which resulted in the loss of eight lives, and material challenges at the Caribou Mine in New Brunswick. Apart from the tragic loss of human life, the Perkoa Mine flood has significantly impacted Trevali's financial health in the second quarter of 2022, including, among other things, (1) the need to incur more than $25 million of direct and indirect costs related to dewatering efforts, infrastructure refurbishment, and construction linked to repairs and rehabilitation; and (2) the cessation of all operations at the Perkoa Mine for more than four months. In addition, the production performance at the Caribou Mine has been significantly impacted following continued operational issues due to low equipment availability and productivity rates with a mining contractor. FTI was appointed monitor. Counsel is Blakes for the companies, Dentons for the monitor, Fasken for BNS, McCarthy Tétrault for Glencore International AG et al., KND Complex Litigation for an ad hoc committee of shareholders, Koskie Glavin Gordon for the union at the Caribou Mine and Cassels for Trevali's directors.