Trevali Renewable Energy, Inc, has been established by Canada-based mining firm Trevali Resources Corp, and its first action has been to agree debt funding for the acquisition and upgrade of a mini-hydro plant in Peru.
The new company has agreed to a debt finance arrangement with two local Peruvian banks to help buy and upgrade the Tingo run-of-river plant from 1.2MW to 8.8MW. Trevali wants to link the plant to he national grid.
The Peruvian banks are Banco Internacional del Peru and Estudio Echecopar. They are to jointly arrange long-term credit facilities to cover all the US$20M debt finance needs of the project.
The plant and water rights are currently held by Compania de Minerales Santander, which is majority owned by Trevali.
The hydro plant would help power a re-opened mining operation at Santander, some 215km from Lima. Tingo is approximately 17km from the main mine infrastructure, which ended production in 1993.
The new mining plan and hydro project results from Trevali’s successful exploration work in the area in late 2007.