Underground Mining Halt at Kombat Mine: A Setback and Strategic Opportunity

The Kombat mine in Namibia, operated by Trigon Metals Inc., has experienced a significant setback with the failure of both main dewatering pumps on January 16, 2025. This incident has led to the suspension of underground mining operations and the anticipation of flooding in the coming days. While this halt poses immediate and long-term challenges, it also presents strategic opportunities for Trigon and its partner, Horizon Corporation Ltd.

The pump failure and subsequent flooding have raised safety and environmental concerns. All personnel have been evacuated from affected areas, and underground equipment is being removed to ensure safety at the Kombat site. The flooding could lead to unsafe working conditions and potential ecological damage, highlighting the importance of addressing the pump failure and preventing further flooding.



Despite the challenges, Trigon and Horizon are committed to working together to mitigate the impact of the mining halt and restore operations. The previously announced transaction with Horizon is expected to proceed, with both parties standing by their commitment to complete the purchase of Trigon's interest in the Kombat mine. This transaction could provide the necessary capital and support to overcome the current challenges and restore operations.

To mitigate the impact of the mining halt, Trigon and Horizon are exploring strategic alternatives. These alternatives include the potential reopening of the Kombat open pit, redeployment of capital and manpower to other mines, and negotiations with national utilities to address power cuts and water supply issues. By considering these alternatives, Trigon and Horizon aim to maintain the viability of the mine and the company's overall financial health.

In conclusion, the underground mining halt at the Kombat mine is a significant setback for Trigon Metals Inc. However, with the support of Horizon Corporation Ltd. and the exploration of strategic alternatives, the company has the opportunity to overcome this challenge and restore operations. By addressing the immediate and long-term implications of the mining halt, Trigon and Horizon can work together to ensure the safety of mine workers, protect the environment, and maintain the viability of the Kombat mine.