Trigon Metals: Unlocking Value Through Strategic Sale of Kombat Mine

Trigon Metals Inc. (TSX-V: TM; OTCQB: PNTZF) has taken a significant step towards strengthening its financial position and accelerating growth by signing a binding loan agreement with Horizon Corporation Ltd (Horizon) for the proposed strategic sale of its interest in the Kombat Mine in Namibia. The proposed transaction, valued at USD $30 million, reflects Trigon's strategic focus on advancing its Addana, Silver Hill, and Kalahari exploration projects while ensuring operational continuity and promoting expansion for the Kombat Mine.

The loan agreement, totaling up to USD $5 million, allows Horizon to begin investing in the Kombat Mine and provide capital to the project in advance of the sale's completion. The loan will be issued in three tranches, with the first USD $500,000 received within 7 working days of signing the loan agreement. The remaining USD $2 million and USD $2.5 million will be received in subsequent tranches, subject to certain conditions. The loan carries a 15% annual interest rate with a 6-month grace period.



The proposed transaction contemplates a valuation for the Kombat mine of USD $30 million, which will be subject to definitive agreements, shareholder approval, regulatory consent, and other closing conditions. 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 of 1% will be payable on net copper revenue, when invoiced copper price on final invoicing is greater than USD $4.00 per pound, payable quarterly for 20 quarters.

The proposed sale of the Kombat Mine is a strategic move by Trigon Metals to strengthen its financial position and accelerate growth in its other African projects. By securing a valuation of USD $30 million for the Kombat mine, Trigon will receive a significant influx of capital, positioning it to advance exploration and development at its Addana and Kalahari projects. This transaction also ensures operational continuity and promotes expansion for the Kombat Mine, while allowing Trigon to return a meaningful portion of the proceeds back to shareholders through share buybacks, dividends, or a combination of the two, once the various Agreement milestones are achieved.

In conclusion, the proposed strategic sale of the Kombat Mine by Trigon Metals is a decisive win for the company and its shareholders. The deal offers an opportunity to maximize growth for the company as a whole while ensuring stability and continuity for the workforce at the site. The influx of capital will position Trigon to advance exploration and development at its Addana and Kalahari projects, accelerating its next phase of growth as a company.