Trigon Metals says it has secured a N$46 million (US$2.5 million) working capital advance for its Kombat mine in Namibia from IXM S.A., the mine’s off-taker.
According to Trigon’s CEO and Executive Chairman, Jed Richardson, the advance will be provided in two tranches of N$22 million (US$1.25 million) each.
Trigon has already received the first tranche, with the second tranche scheduled to be received between August 19 and August 30, 2024.
“The advance payment from IXM reiterates our stakeholders’ commitment to the Kombat Project in Namibia and is off the back of Kombat’s ability to consistently meet and exceed our projections and consistently deliver to IXM a high quality copper concentrate. We thank IXM for their continued support,” he said.
He added that the agreement includes an interest rate on the advance, set at a 30-day SOFR average plus 2.5%. Repayment will occur over the next year through monthly deliveries of copper concentrate starting in October 2024.
In June, Trigon announced that it planned to extract a significant amount of copper ore, ranging from 250,000 to 280,000 tonnes in 2025, from its Kombat Asis West underground mine.
The copper content within the ore is expected to be between 1.95% and 2.3% on average. This translates to a projected haul of 5,500 to 6,100 tonnes (roughly 12.1 to 13.4 million pounds) of refined copper metal.
Trigon is a publicly-traded Canadian exploration and development company with its core business focused on copper and silver holdings in African jurisdictions.
Currently, the company has operations in Namibia and Morocco. In Namibia, the company holds an 80% interest in five mining licences in the Otavi Mountainlands, where it is focused on exploration and re-development of the previously producing Kombat Mine.
