Trevali Mining of Canada will sell its 90% stake in Namibia’s Rosh Pinah zinc mine to Appian Natural Resources Fund III.
The beleaguered miner has had a difficult fiscal and operational year. Ricus Grimbeek, the company’s president and Chief Executive resigned in September after a Burkina Faso court found two managers guilty of involuntary manslaughter.
The convictions followed a tragic incident at the company’s Perkoa mine in the West African country in April, which was caused by a flash flood that trapped and killed eight miners.
Trevali suspended operations at its Caribou zinc mine in New Brunswick, Canada, in addition to Perkoa, due to mounting financial challenges.
The Vancouver-based company announced in October that its 90%-owned subsidiary in Burkina Faso declared bankruptcy and filed for liquidation, kicking off a gradual shutdown process that included the sale of all assets in the country.
Trevali itself filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) and was quickly delisted from the Toronto Stock Exchange.
The CCAA allows businesses to restructure and continue operations while avoiding the “social and economic consequences of bankruptcy.”