Horizon Corporation has advanced N$24.3 million (US$1.35 million) to Trigon Metals as part of a N$74 million (US$4 million) loan.
In exchange for the loan, Horizon Corporation has exclusivity to finalize the Kombat Mine sale agreement, with a break-free proportional to the advanced amount.
Trigon Metals has agreed to sell its 100% stake in Kombat Mine to Horizon Corporation for US$24 million.
Initially, the loan amount was US$5 million, and the Kombat Mine sale amount was US$30 million.
The US$4 million will be disbursed in five stages, while
Trigon Metals now has an additional US$2 million loan option.
Horizon has invested US$500.000 in Trigon’s recent private placement and will have to pay the US$24 million over eight quarterly instalments.
After the first payment, further instalments depend on securing at least US$10 million in third-party financing for Kombat Mine’s development.
If not secured within 18 months, Horizon Corporation can proceed with payments or return 90% of its shares in the mine, with its investment converted into debt.
Payment terms have been adjusted to account for Trigon’s outstanding debts to IXM S.A. and Sprott.
Additional payments of US$5.5 million to US$15 million to Trigon will be tied to future copper prices and the planned expansion of the Kombat Mine’s processing capacity.
*Exchange rate is US$1=N$18
