Trigon Metals has lowered the offer for the sale of its 80% shares in Kombat Mine from US$30 million to US$24 million.
The buyer, Horizon Corporation, will pay off in eight equal quarterly instalments.
Payments after the first instalment will be contingent on the parties having secured third-party debt financing of at least US$10 million for the Kombat Mine’s development.
Horizon Corporation can choose to start paying the instalments or to return 90% of the Kombat Mine shares, with all capital it has contributed being converted to debt, if third-party debt financing is not approved within 18 months of approval of the proposed transaction.
The proposed offer incorporates adjustments to Trigon Metals’ outstanding liabilities to IXM S.A. and Sprott Private Resource Streaming and Royalty (B) Corp.
A follow-on payment structure has been introduced, linking additional payments to the London Metal Exchange (LME) copper price and future mill expansion at Kombat Mine.
The companies have also lowered the loan from the initial US$5 million to US$4 million, with structured advances over five tranches.
Horizon Corporation has agreed to invest US$500,000 in Trigon’s private placement offering and advance an additional loan option of US$2 million to provide flexibility for further financing before Trigon Metals obtains shareholder approval for the proposed transaction.
Trigon Metals says the revised terms of the proposed transaction enhance financial flexibility while ensuring continued exposure to Kombat Mine’s upside potential.
The company also says the agreement strengthens its ability to focus on advancing its other core projects, notably the Kalahari Copper Project and the Safi Silver spinout, while allowing Horizon to lead the next development phase at Kombat Mine.
“This strategic alignment optimises Trigon Metals’ asset portfolio and supports long-term value creation for shareholders,” the company says.
Trigon Metals CEO Jed Richardson says the revised terms in the Kombat Mine ensure that shareholders continue to benefit from the future success of the asset while reducing dilution and securing essential financing for our ongoing projects.
“We appreciate Horizon’s commitment to investing in the Kombat Mine and the Namibian mining sector, and we look forward to completing the transaction,” Richardson says.
Horizon Corporation chairperson Bradley Rawson says these revisions allow them to move forward in a structured manner while ensuring that the financing plan supports the mine’s development and community engagement in Namibia.
Trigon Metals’ partner Knowledge Katti says the deal is not just a win for the mine and its investors but a transformative moment for Kombat and the communities surrounding the Kombat Mine.
Katti adds that this partnership could create lasting opportunities for generations by prioritising sustainable development and local employment.
“The revised terms align economic growth with social responsibility, reinforcing our pride in supporting a project that strengthens both the country’s mining sector and its people,” Katti says.
