Trevali Mining and Xstrata Canada's Xstrata Zinc Canada division have entered into agreements for toll milling and a metal concentrate purchase offtake.
Under the toll milling agreement, zinc-lead-silver-copper-gold mineralisation from Trevali Mining's Halfmile mine will be sent to Brunswick 12 concentrate processing plant in New Brunswick, Canada.
The work will include stockpiling, treatment, processing and production of concentrates using the plant's mill process flow sheet..
Both the firms have also entered into an offtake agreement whereby Xstrata will purchase 100% of the Halfmile mine production at terms under the toll milling agreement.
The Halfmile mine project is currently under construction and underground development, and is scheduled to begin production in the end of 2011.