Canada listed mining firm Trigon Metals Inc has raised N$29.4 million (US$1,945 000) from a private placement, with net proceeds from the offering set to be used for the recommencement of mining at the Kombat Mine.
Some of the funds will also be used for working capital and general corporate purposes at one of the most significant copper mines in Namibia. Established in 1962, Kombat Mine was forced to shut down in 2008. At the close of 2021, Trigon resumed production at Kombat Mine following 14 years of closure.
As part of the private placement, Trigon issued 4,862,500 units at a price of US$0.40 per Unit, with each Unit consisting of one common share of Trigon and one-half of one common share purchase warrant.
“Each Warrant entitles the holder thereof to acquire one Share at a price of US$0.50 for a period of 24 months following the date hereof, subject to an acceleration provision whereby in the event that at any time after the expiry of the statutory hold period, the Shares trade at $0.75 or higher on the TSX.”
Trigon also paid cash finder’s fees of N$847 313.60 (US$56,000) and issued 140,000 finder’s warrants to eligible finders.
“Each Finder Warrant will entitle the holder thereof to acquire one Share at a price of $0.40 for a period of 24 months following the date hereof. The Offering remains subject to the final approval of the TSX Venture Exchange. All securities issued in connection with the Offering are subject to a statutory hold period of four-months and one-day.”
The fund raising by the company comes after it shipped its first shipments of copper concentrate from Kombat Mine consisting of 31 dry metric tonnes of concentrate, grading 20.41% copper and 265 g/t silver.
Trigon last year entered into an agreement with IXM to acquire 100% of the production from the Kombat, in exchange for a US$5 million project finance facility for the restart of the mine.
IXM, owned by the listed CMOC group, is a global merchandiser of base and other non-ferrous metals, already active in Namibia.
