Trigon Metals Inc. has secured a N$45,7 million (US$2.5 million) advance from its offtaker, IXM S.A., for working capital at the Kombat mine.
The advance payment will be drawn in two tranches of US$1.25 million each, the first tranche already being drawn and the second tranche to be drawn between August 19 and August 30, 2024.
Interest will be paid monthly at a 30-day SOFR average plus 2.5%.
Capital will be settled in equal monthly instalments over 12 months by way of deliveries of copper concentrate commencing October 2024.
IXM’s Manuel Sternheimer said they are grateful for this opportunity to expand cooperation with Trigon and further build on our strong relationship and footprint in Namibia.
Trigon Metals CEO Jed Richardson said the advance payment from IXM reiterates stakeholders’ commitment to the Kombat Project.
Richardson added that the advance payment is off the back of Kombat’s ability to meet and exceed our projections consistently and consistently deliver to IXM a high-quality copper concentrate.
The companies signed the offtake on November 23, 2021.
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.
Before signing the offtake agreement, IXM signed a US$5 million credit agreement with Trigon Metals to fund the restart of the Kombat Mine.
