Kombat Mine sale closer to reality
Trigon secures loan
Horizon Corporation will exclusively negotiate the purchase of Trigon Metals' interest in the Kombat Mine - a transition in the region of US$30 million or more than N$500 million.
Trigon Metals, owner of 80% of the Kombat Mine in Namibia, has signed a binding loan agreement with Horizon Corporation for a loan of up to US$5 million, just short of N$90 million at the current exchange rate.
This will pave the way for Horizon to exclusively negotiate the purchase of Trigon’s interest in the Kombat Mine - a transition in the region of US$30 million or more than N$500 million.
“Agreeing to a sale of the Kombat Mine is a very difficult decision,” said Trigon CEO and executive chairman Jed Richardson.
The proposed transaction reflects Trigon’s strategic focus on advancing its Addana, Silver Hill and Kalahari exploration projects, strengthening the company’s financial position while ensuring operational continuity and promoting expansion for the Kombat Mine, Trigon said.
The deal is subject to definitive agreements, shareholder approval, regulatory consent and other closing conditions.
Capital
The loan allows Horizon to begin investing in the Kombat Mine and provide capital to the project in advance of the completion of the sale.
“This deal is a decisive win for the company and shareholders,” Richardson said yesterday.
“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,” he added.
According to Richardson: “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 site.
“The influx of capital will position Trigon to advance exploration and development at our Addana and Kalahari projects, accelerating our next phase of growth as a company. Since the company will be in a strong financial position with negligible debt, we also propose to return a meaningful portion of the proceeds back to the market in the form of share buybacks, dividends or a combination of the two, once the various agreement milestones are achieved,” he said.
Transaction
Horizon will acquire up to 100% of a Canadian domiciled holding company, which indirectly owns 80% of the Kombat Mine.
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 US$4.00 per pound, payable quarterly for 20 quarters.
A break fee of US$$5 million applies if the proposed transaction is terminated due to non-approval or a superior bid.
This will pave the way for Horizon to exclusively negotiate the purchase of Trigon’s interest in the Kombat Mine - a transition in the region of US$30 million or more than N$500 million.
“Agreeing to a sale of the Kombat Mine is a very difficult decision,” said Trigon CEO and executive chairman Jed Richardson.
The proposed transaction reflects Trigon’s strategic focus on advancing its Addana, Silver Hill and Kalahari exploration projects, strengthening the company’s financial position while ensuring operational continuity and promoting expansion for the Kombat Mine, Trigon said.
The deal is subject to definitive agreements, shareholder approval, regulatory consent and other closing conditions.
Capital
The loan allows Horizon to begin investing in the Kombat Mine and provide capital to the project in advance of the completion of the sale.
“This deal is a decisive win for the company and shareholders,” Richardson said yesterday.
“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,” he added.
According to Richardson: “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 site.
“The influx of capital will position Trigon to advance exploration and development at our Addana and Kalahari projects, accelerating our next phase of growth as a company. Since the company will be in a strong financial position with negligible debt, we also propose to return a meaningful portion of the proceeds back to the market in the form of share buybacks, dividends or a combination of the two, once the various agreement milestones are achieved,” he said.
Transaction
Horizon will acquire up to 100% of a Canadian domiciled holding company, which indirectly owns 80% of the Kombat Mine.
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 US$4.00 per pound, payable quarterly for 20 quarters.
A break fee of US$$5 million applies if the proposed transaction is terminated due to non-approval or a superior bid.
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