Trigon Metals Inc. says it has signed a binding loan agreement with Horizon Corporation Ltd for up to N$89 million (US$5 million) to fund the development of its Kombat copper mine project in Namibia.
The loan comes as part of Horizon’s exclusivity to negotiate the purchase of Trigon’s interest in the Kombat Mine in Namibia, with a proposed valuation of N$536 million (US$30 million).
Horizon will provide N$89.3 million (US$5 million) in three tranches: an initial N$8.93 million within seven days of signing, N$35.72 million post-security approvals, and a final N$44.65 million within 45 days of the second tranche.
The loan, bearing a 15% annual interest rate, includes a six-month grace period before repayment begins over 18 months.
“This deal is a decisive win for the Company and shareholders. We had been committed to operating and growing the Kombat mine, but this deal offers the Company and shareholders an opportunity to maximise growth for the Company as a whole,” said Trigon Metals CEO and Executive Chairman Jed Richardson.
This financing enables Horizon to invest in the Kombat Mine ahead of the proposed acquisition while providing Trigon with essential funding to sustain operations.
If the acquisition is completed, the loan will convert into equity; otherwise, it will remain payable with associated break fees.
“The agreement allows us to realise significant value from the Kombat Mine in an expensive and uncertain funding market while ensuring stability and continuity for the workforce at the site,” he said.
Upon completion of the sale, Horizon will acquire up to 100% of the Canadian-domiciled holding company, which indirectly owns 80% of the Kombat Mine.
Additional follow-up payments of N$178.6 million (US$10 million) to N$357.2 million (US$20 million) may apply based on underground production milestones.
The proposed transaction, subject to shareholder and regulatory approvals, reflects a strategic shift for Trigon Metals.
The deal allows Trigon to focus on advancing its Addana, Silver Hill and Kalahari exploration projects while strengthening its financial position.
