Trigon Metals Inc says it is in discussions with Horizon Corporation Limited regarding its proposed acquisition of Kombat Mine in Namibia.
Horizon Corporation Limited proposed a sale valued between N$544 million (US$30 million) and N$908 million (US$50 million), along with a limited royalty tied to future copper production from the Kombat Mine in Namibia.
Horizon proposed a N$90 million (US$5 million) loan to Trigon to support the transaction’s evaluation and due diligence.
The loan will be disbursed in three tranches – N$9 million (US$500,000) within seven days of a binding agreement, N$36 million (US$2 million) in December 2024, and N$45 million (US$2.5 million) 45 days later.
The loan carries a 15% annual interest rate and a 24-month term.
“Agreeing to a sale of the Kombat Mine is a very difficult decision. We are pleased that Horizon has come forward with a competitive offer for the Kombat Project, with a commitment to make the future investments to fully realize the growth and potential of the project,” Trigon Metals CEO and Executive Chairman Jed Richardson said.
“The proposed transaction would cap dilution and offer shareholders risk-free benefit from the future success of the asset. We look forward to working closely with Horizon to settle final terms, reach definitive agreements and complete the Proposed Transaction.”
Trigon will grant Horizon exclusive rights to finalise the asset sale agreement, with a break fee proportional to the loan amount advanced.
The proposed sale is contingent on regulatory and shareholder approvals, along with the execution of definitive agreements.
According to Horizon Corporation Executive Chairman, Bradley Rawson, the deal would strengthen their mining portfolio in sub-Saharan Africa and position them to grow the Kombat Mine in collaboration with local and national stakeholders.
“We are currently active in both sub-Saharan Africa as a mining region and copper production as a business, so we view this transaction as a good opportunity to add to our portfolio of assets and to extend our working history in Namibia. Our group is looking forward to growing the Kombat Mine by working with the local team and the Namibian authorities to ensure a positive outlook for our stakeholders, Trigon shareholders and the local community,” he said.
In addition to the Kombat Mine sale, Trigon will retain the Kalahari Copper Project in Namibia and advance its Moroccan silver exploration projects, including Silver Hill and Addana, through a planned spinout.
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.
The company currently operates in Namibia and Morocco, holding an 80% interest in five mining licenses in the Otavi Mountainlands of Namibia, an area known for its high-grade copper deposits.
Trigon is concentrating on the exploration and redevelopment of the previously producing Kombat Mine in the region.
Horizon Corporation is an investment-focused mining company with a diversified portfolio of projects, including various metals and operating in different jurisdictions.
The company aims to continue expanding its portfolio of producing assets while focusing on the crucial details necessary for the efficient and sustainable success of mining projects.
