Trigon Metals Inc. has placed a N$170 million ( US$8,933,261) order with Epiroc South Africa to purchase underground mining equipment for the company’s Kombat mine in Namibia, where production is scheduled to ramp up from April 2024. Epiroc
Financial Solutions AB will finance 85% of the purchase consideration, amounting to N$144.1million (US$7,593,272.30), through Trigon Mining Namibia, with a 15% down payment N$25.4 million (US$1,339,988.70) to be paid upfront.
The facility term is 60 months from the shipment date of each equipment item, and interest will accrue at a rate of 10.95% per annum. Repayments will be made in 55 monthly instalments, commencing six months after the respective shipment dates.
“An arrangement fee of 0.75% of the financed amount will be payable upon the signature of a supplier credit agreement. The facility will be secured by the mining equipment and a guarantee from Trigon. The above terms are subject to the finalization of a supplier credit agreement between the parties and regulatory, board, and other approvals as required. Mining equipment is expected to be received on-site at Kombat between October 2023 and March 2024,” the company stated.
Trigon Metals President and CEO, Jed Richardson, welcomed the approval of financing for the mining equipment. “We are pleased to be working with Epiroc and thank them and the team members who worked to put this financing package in place in a timely manner. This allows us to build out our underground fleet while we are just starting to generate cash flow from the open pit,” he said.
This development comes as Trigon Metals announced the full restart of milling and processing operations at the Kombat Mine, marking significant progress toward achieving commercial production targets by the end of September.
“On-site, work at the production plant has been completed as scheduled. Crushers and mills have been initiated. The coarse ore bins are being filled, and the first concentrate was produced on Friday, August 18th, 2023. Details of this will be shared in a subsequent release. Approximately 25,000 tons of ore are now stockpiled on the run of mine pad,” the company reported.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper and silver holdings and operations in Namibia and Morocco.
