Trigon Metals Inc has entered into a credit agreement with IXM SA for a US$5 million project finance facility to provide the next tranche of funding required for the restart of the Kombat Mine.
Kombat Mine officially resumed production last week after 14 years of closure.
IXM has agreed on terms with Trigon Namibia to acquire 100% of the production from the Kombat open pit mine, which is scheduled to produce its first concentrate in early 2022.
IXM owned by the listed CMOC group, is a global merchandiser of base and other non-ferrous metals, already active in Namibia.
Financing Facility terms:
- The Facility is expected to be drawn down in two tranches of US$2.5 million each.
- The Facility is repayable over 36 months, commencing 6 months after the initial drawdown.
- Trigon Mining will pay to IXM a commitment fee of 3.2% of the Facility amount and an arrangement fee of 1.0% of the Facility amount, each fee payable pro rata based on the amount of each tranche.
- Trigon will provide an unsecured guarantee of the obligations under the Facility.
- Trigon Namibia will provide certain security over substantially all of its assets that do not require third party approval to charge and Kombat Holdings Namibia (Pty) Ltd will pledge its shares of Trigon Namibia to IXM as security for Trigon Namibia’s obligations under the Facility.
“We have been engaging with IXM over the past few months and are pleased to announce our partnership with them as we take the Kombat Mine into production. The finalization of our financing and offtake arrangements was a key milestone in the restart process and we look forward to developing a long-term relationship with IXM as the operation grows.” Jed Richardson, President and CEO of Trigon said.
