Trigon Metals is progressing towards the previously announced sale of its 80% ownership interest in the Kombat Mine in Namibia to Horizon Corporation.
In February 2025, Trigon Metals amended the agreement with Horizon, adjusting the financial structure of the proposed transaction.
The principal loan amount was reduced from $5m to $4m, with Horizon investing $500,000 in Trigon's private placement offering.
Despite missing the initial target date for a binding share purchase agreement, the companies are finalising the transaction terms, with Trigon expecting successful completion.
The sale terms include a $4m structured loan from Horizon to Trigon, with a $2m additional loan option.
Trigon's shares in the Kombat Mine are priced at $24m, payable in eight quarterly instalments, while Trigon retains a 1% net revenue royalty under specific conditions.
The revised terms provide Trigon with enhanced financial flexibility and continued exposure to the Kombat Mine's potential.
The agreement allows Trigon to secure near-term capital while minimising shareholder dilution and enables Horizon to spearhead the mine's development.
Furthermore, this strategic move allows Trigon to focus on other core projects such as the Kalahari Copper Project and the Safi Silver spinout.
Trigon Metals CEO and executive chairman Jed Richardson said: “We are pleased with the progress we have made toward closing the sale of Trigon’s interest in the Kombat Mine to Horizon. While we would have preferred a faster pace, we are working through the necessary steps to ensure a successful and seamless transition.
“Both Trigon and Horizon remain fully engaged in finalising the transaction, and we look forward to delivering a positive outcome for our shareholders.”
Completion of the transaction is subject to regulatory approvals including TSX Venture Exchange approval, Trigon shareholder approval, third-party consents and other customary closing conditions.
In January 2025, Trigon Metals suspended operations at the Kombat Mine for six to nine months to address unexpected failures of its main dewatering pumps.
