Trigon Metals Provides Update on Progress of Proposed Strategic Sale of the Kombat Mine
Trigon Metals has signed a binding loan agreement with Horizon for up to USD$5 million, granting Horizon exclusivity rights to negotiate the purchase of Trigon's interest in the Kombat Mine in Namibia. The proposed transaction values the mine at USD$30 million (C$0.97/share), with potential follow-up payments of USD$10-20 million based on production milestones.
The loan will be issued in three tranches: USD$500,000 within 7 working days, USD$2 million after security agreements, and USD$2.5 million within 45 days of the second tranche. The loan carries a 15% annual interest rate with a 6-month grace period. The transaction includes a 1% net revenue royalty on copper production and requires shareholder and regulatory approvals.
Trigon Metals ha firmato un accordo di prestito vincolante con Horizon per un massimo di 5 milioni di USD, concedendo a Horizon diritti di esclusiva per negoziare l'acquisto dell'interesse di Trigon nella Kombat Mine in Namibia. La transazione proposta valuta la miniera 30 milioni di USD (C$0,97/azione), con potenziali pagamenti successivi di 10-20 milioni di USD basati su obiettivi di produzione.
Il prestito sarà erogato in tre tranche: 500.000 USD entro 7 giorni lavorativi, 2 milioni di USD dopo gli accordi di garanzia, e 2,5 milioni di USD entro 45 giorni dalla seconda tranche. Il prestito ha un tasso di interesse annuale del 15% con un periodo di grazia di 6 mesi. La transazione include una royalty netta sulle entrate dell'1% sulla produzione di rame e richiede approvazioni da parte degli azionisti e delle autorità regolamentari.
Trigon Metals ha firmado un acuerdo de préstamo vinculante con Horizon por hasta 5 millones de USD, otorgando a Horizon derechos de exclusividad para negociar la compra del interés de Trigon en la Kombat Mine en Namibia. La transacción propuesta valora la mina en 30 millones de USD (C$0,97/acción), con pagos adicionales potenciales de 10-20 millones de USD basados en hitos de producción.
El préstamo se emitirá en tres tramos: 500,000 USD dentro de 7 días hábiles, 2 millones de USD después de los acuerdos de garantía, y 2,5 millones de USD dentro de 45 días del segundo tramo. El préstamo tiene una tasa de interés anual del 15% con un período de gracia de 6 meses. La transacción incluye una regalía del 1% sobre los ingresos netos de la producción de cobre y requiere aprobaciones de los accionistas y de las autoridades regulatorias.
트리곤 메탈스는 호라이즌과 최대 500만 달러의 구속력 있는 대출 계약을 체결하여 호라이즌에게 나미비아의 콤바트 광산에 대한 트리곤의 이익 구매 협상 독점권을 부여했습니다. 제안된 거래는 광산의 가치를 3000만 달러(주당 C$0.97)로 평가하며, 생산 이정표에 따라 1000만 ~ 2000만 달러의 추가 지불이 가능할 수 있습니다.
대출은 세 차례에 걸쳐 지급됩니다: 50만 달러는 7영업일 이내, 200만 달러는 보안 계약 체결 후, 그리고 250만 달러는 두 번째 분할 지급 후 45일 이내에 지급됩니다. 이 대출은 연이율 15%로 6개월의 유예 기간이 있습니다. 거래에는 구리 생산에 대한 순수익 1% 로열티가 포함되며, 주주와 규제 당국의 승인이 필요합니다.
Trigon Metals a signé un accord de prêt contraignant avec Horizon pour un montant allant jusqu'à 5 millions USD, accordant à Horizon des droits d'exclusivité pour négocier l'achat de l'intérêt de Trigon dans la Kombat Mine en Namibie. La transaction proposée évalue la mine à 30 millions USD (C$0,97/action), avec des paiements de suivi potentiels de 10 à 20 millions USD basés sur des jalons de production.
Le prêt sera émis en trois tranches : 500 000 USD dans les 7 jours ouvrables, 2 millions USD après les accords de garantie et 2,5 millions USD dans les 45 jours suivant la deuxième tranche. Le prêt affiche un taux d'intérêt annuel de 15 % avec une période de grâce de 6 mois. La transaction comprend une redevance sur les revenus nets de 1 % sur la production de cuivre et nécessite l'approbation des actionnaires et des autorités de régulation.
Trigon Metals hat einen verbindlichen Darlehensvertrag mit Horizon über bis zu 5 Millionen USD unterzeichnet, der Horizon Exklusivrechte für die Verhandlung des Kaufs von Trigons Anteil an der Kombat Mine in Namibia einräumt. Die vorgeschlagene Transaktion bewertet die Mine mit 30 Millionen USD (C$0,97/Aktie), mit möglichen Folgezahlungen von 10 bis 20 Millionen USD basierend auf Produktionsmeilensteinen.
Das Darlehen wird in drei Tranchen ausgezahlt: 500.000 USD innerhalb von 7 Werktagen, 2 Millionen USD nach Sicherheitsvereinbarungen und 2,5 Millionen USD innerhalb von 45 Tagen nach der zweiten Tranche. Das Darlehen hat einen jährlichen Zinssatz von 15 % mit einer 6-monatigen Karenzzeit. Die Transaktion umfasst eine Nettoeinnahmen-Royalty von 1 % auf die Kupferproduktion und erfordert Genehmigungen der Aktionäre sowie der Regulierungsbehörden.
- Sale valuation of USD$30 million (C$0.97/share) for Kombat Mine
- Additional potential payments of USD$10-20 million based on production milestones
- Immediate access to USD$5 million in financing through loan agreement
- 1% net revenue royalty on copper production
- Planned return of proceeds to shareholders via buybacks or dividends
- 15% annual interest rate on USD$5 million loan
- USD$5 million break fee if transaction is terminated
- Divestment of major producing asset
The Proposed Transaction reflects Trigon’s strategic focus on advancing its Addana, Silver Hill and Kalahari exploration projects, strengthening the Company’s financial position while ensuring operational continuity and promoting expansion for the Kombat Mine.
The Loan allows Horizon to begin investing in the Kombat Mine and provide capital to the project in advance of the completion of the sale. As outlined below should the Trigon and its shareholders elect to consummate the Proposed Transaction, the Loan will become equity contributed to the Kombat Mine, but if Trigon chooses not to complete the transaction the funds will become payable as loans to the Company plus associated break fees. The Loan is separate from the sale price consideration of USD
Jed Richardson, CEO and Executive Chairman of Trigon Metals, commented: “This deal is a decisive win for the Company and shareholders. We had been committed to operating and growing the Kombat mine but this deal offers the Company and shareholders an opportunity to maximize growth for the Company as a whole. The Agreement allows us to realize significant value from the Kombat Mine in an expensive and uncertain funding market while ensuring stability and continuity for the workforce at site. The influx of capital will position Trigon to advance exploration and development at our Addana and Kalahari projects, accelerating our next phase of growth as a company. Since the Company will be in a strong financial position with negligible debt, we also propose to return a meaningful portion of the proceeds back to the market in the form of share buybacks, dividends or a combination of the two, once the various Agreement milestones are achieved.”
Transaction Overview:
Loan Financing
-
USD
$5 million -
Tranche One: USD
$500,000 -
Tranche Two: USD
$2 million -
Tranche Three: USD
$2.5 million
-
Tranche One: USD
-
The Loan will have a grace period of 6 months from the date of Tranche Two drawdown and will be amortized over 18 equal payments from the end of the grace period to the end of the 2-year term bearing an annual interest rate of
15% . - Horizon will be entitled to appoint a board observor to the Company on advance of Tranche Two of the Loan.
- Horizon will be granted exclusivity to negotiate and finalize the Proposed Transaction on advance of Tranche One of the Loan.
Terms for Proposed Acquisition of Kombat Mine
-
Horizon will acquire up to
100% of a Canadian domiciled holding company, which indirectly owns80% of the Kombat Mine for a price consideration of USD$30 million -
Trigon will retain a
1% net revenue royalty on copper production when the Kombat mine achieves copper metal production of 1,000 tonnes for each of two consecutive calendar months. Thereafter a royalty of1% will be payable on net copper revenue, when invoiced copper price on final invoicing is greater than USD$4.00 -
A break fee of USD
$5 million -
Follow-Up payment of ranging between USD
$10 million $20 million
LME 3-month Cu price (USD/Tonne) at Sprott Trigger Date |
<9,000 |
9,000<10,000 |
>10,000 |
<15,000* |
Sprott Trigger Date |
7,500,000 |
10,000,000 |
15,000,000 |
|
1st Anniversary of Sprott Trigger Date |
2,500,000 |
5,000,000 |
5,000,000 |
|
Post Mill Expansion to 1,500 tpd (Expedited Scenario) |
0 |
0 |
0 |
10,000,000 |
1st Anniversary of Mill Expansion to 1,5000 tpd (Expedited Scenario) |
0 |
0 |
0 |
10,000,000 |
*Expedited option is not additional to other follow-on payments, nor is it subject to Sprott Trigger Date |
||||
The Proposed Transaction ensures that the Kombat Mine’s obligations under existing agreements, including the Sprott streaming agreement, will be appropriately addressed as part of the closing of the Proposed Transaction.
Next Steps
The completion of the Proposed Transaction is subject to the following milestones:
- Definitive Agreements: A binding purchase agreement is being negotiated by the parties.
- Shareholder Approval: A shareholder vote will be held to approve the transaction.
- Regulatory Approvals: Including TSX Venture Exchange approval and Namibian regulatory consents.
- Completion of Due Diligence: Horizon will complete its detailed review prior to closing.
Jed Richardson, CEO and Executive Chairman of Trigon Metals, commented: “We are pleased to make this step toward a successful transaction with Horizon. The Proposed Transaction is expected to realize significant value from the Kombat Mine in an expensive funding market while ensuring stability and continuity for the workforce at site. The influx of capital will position Trigon to advance exploration and development at our Addana and Kalahari projects, accelerating our next phase of growth as a Company. We also propose to return a meaningful portion of the proceeds from the Proposed Transaction back to the market in the form of share buybacks, dividends or a combination of the two, once the various transactional milestones are achieved.”
Trigon Metals Inc.
Trigon is a publicly-traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. Currently, the company has operations in
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the Loan Agreement, the Proposed Transaction, the Sprott Trigger Date, the Company’s strategies and the Company’s abilities to execute such strategies, the economic viability of the Kombat Mine, the Company’s ability to satisfy the conditions for the Proposed Transaction the Company’s expectations for the Kombat Mine, and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241216261125/en/
Tom Panoulias, VP Corporate Development
+1 647 276 6002 x 1127
IR@trigonmetals.com
www.trigonmetals.com
Source: Trigon Metals Inc.
FAQ
What is the proposed sale price for Trigon's Kombat Mine (PNTZF)?
What are the terms of the USD$5 million loan agreement between Trigon (PNTZF) and Horizon?
What royalty will Trigon (PNTZF) retain from the Kombat Mine sale?
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