Trigon Signs US$5 Million Project Finance Facility with Ixm and Agrees Offtake Terms
TRIGON SIGNS US$5 MILLION PROJECT FINANCE FACILITY WITH
IXM AND AGREES OFFTAKE TERMS
TORONTO, ONTARIO October 28, 2021 – Trigon Metals Inc. (TSX -V: TM) (“Trigon” or the
“Company”) is pleased to announce th at it has entered into a credit agreement with IXM SA
(“IXM”) for a US$5 million project finance facility to provide the next tranche of funding required
for the restart of the Kombat Mine. The parties have also agreed on concentrate offtake terms
for the offtake of copper concentrate by IXM from the Company’s Kombat Mine in Namibia.
IXM is a global merchandiser of base and other non-ferrous metals, with expert teams on every
continent. It is among the top copper, zinc , and lead concentrate , and cobalt merchants
internationally and is a leading trader of refined base metals. It is already active in Namibia, with
a strong track record in that region, making it the ideal partner for the Kombat Mine as it
commences production. IXM is fully owned by the CMOC group, which is an international mining
company with operations across the world and one of the leading suppliers of copper, cobalt,
molybdenum, tungsten, niobium and phosphate fertilizer products.
Financing Facility
Trigon and its Namibian subsidiary, Trigon Mining (Namibia) (Pty) Ltd (“Trigon Namibia”), have
entered into a credit agreement with IXM for a US$5 million project finance facility (the “Facility”),
the proceeds of which will be used for capital and operating expenditure for the restart of the
Kombat Mine.
The Facility is expected to be drawn down in two tranches of US$2.5 million each. The drawdowns
are subject to various conditions precedent, including signature of the offtake agreement as
referred to below, receipt of applicable board of directors, and regulatory approvals, as well as
confirmation of further funding support from Trigon as required.
The Facility is repayable over 36 months, commencing 6 months after the initial drawdown. Trigon
Mining will pay to IXM a commitment fee of 3.2% of the Facility amount and an arrangement fee
of 1.0% of the Facility amount, each fee payable pro rata based on the amount of each tranche.
Trigon will provide an unsecured guarantee of the obligations under the Facility , Trigon Namibia
will provide certain security over substantially all of its assets that do not require third party
approval to charge and Kombat Holdings Namibia (Pty) Ltd. will pledge its shares of Trigon
Namibia to IXM as security for Trigon Namibia’s obligations under the Facility.
Copper Concentrate Offtake
IXM has agreed on terms with Trigon Namibia to acquire 100% of the production from the Kombat
open pit mine, which is scheduled to produce its first concentrate in early 2022.
Jed Richardson, President and CEO of Trigon, commented, “We have been engaging with IXM
over the past few months and are pleased to announce our partnership with them as we take the
Kombat Mine into production. The finalization of our financing and offtake arrangements was a
key milestone in the restart process and we look forward to developing a long-term relationship
with IXM as the operation grows.”
About Kombat Mine
The Kombat Copper Project is the flagship project of Trigon , with the Company’s mining and
prospecting licence areas covering an area of more than 7,500 ha in the Otavi Mountainlands in
Namibia. The Kombat Project is comprised of three mining licences, which produced
approximately 12.46 million tonnes of copper between 1962 and 2008, at a grade of 2.62%. The
other two mining licences are within close proximity to Kombat at Gross Otavi and Harasib, which
are believed to be highly prospective for lead and zinc. In addition, the Company also holds an
interest in two exclusive prospecting licences, which represent a potential strike extension of
Kombat.
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 Namibia and Morocco. In Namibia, the Company holds an 80% interest in five
mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high -
grade copper deposits, where the Company is focused on exploration and re-development of the
previously producing Kombat Mine. In Morocco, the Company is the holder of the Silver Hill
project, a highly prospective copper and silver exploration project.
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements
regarding offtake and financing facility terms, the restart of the Kombat Mine, the Company’s
strategies and the Company’s abilities to execute such strategies, the Company’s expectations
for the Kombat Project, 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.
For further information, contact:
Jed Richardson
+1 647 276 6002
Website: www.trigonmetals.com