New deal accelerates Trigon’s Kombat development in Namibia

Trigon Metals is developing the historic Kombat copper mine in Namibia. WhyAfrica visited the mine earlier this month as part of its Southern Africa Road Trip. Image credit: Leon Louw for WhyAfrica

New deal accelerates Trigon’s Kombat development in Namibia

TSX listed Trigon Metals has signed a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. and Sprott Mining Inc. for a USD27.5-million silver and copper stream for its Kombat Mine in Grootfontein in the Otjozondjupa Region of Namibia.

Pursuant to the transaction, Trigon will sell and deliver 100% of its silver produced from the Kombat Mine to the investors. The expansion of the Kombat Mine is projected to increase annual copper production and reduce forecasted operating costs. Proceeds will be used to complete ongoing works to dewater the mine, re-establish services, and continue exploration drill work, as well as to deliver a National Instrument 43-101 Compliant Feasibility Study for underground mining and for general corporate and working capital purposes.

The funds advanced as determined by Sprott Streaming include value for the open pit mine currently being operated from; the phase one underground development of the historic Kombat mine, and the phase two underground development of the Asis Far West mineralisation.

The phase two underground development takes advantage of a 750m, 2000 tonne per day (tpd) production shaft that is built and ready for operation. However, the Asis Far West area of mineralisation has not been quantified into an NI43-101 Resource Estimate nor has an economic study been completed for this phase of the development.

The transaction

As part of the transaction, Sprott Streaming will receive a 3.15% copper stream commencing when phase one underground mining begins that will terminate when mining phase two begins at Asis Far West.

The silver stream is for the life of mine, restricted to the Kombat Project and does not include the Silver Hill Project in Morocco or any new project Trigon may acquire.

According to Jed Richardson, President and CEO of Trigon, the deal is of singular importance because it accelerates, and funds Trigon’s feasibility study and development works at the Kombat Mine.

“It is a timely deal, as well, since our present operations have progressed to the point where we can now initiate expansion plans that will improve our strong position even more. The ability to repurchase 50% of the silver stream is an important feature of this agreement, and ultimately was the deciding factor in choosing to work with Sprott Streaming. We remain bullish on silver and further exploration success, and the repurchase rights give us an option to restore that exposure for our shareholders,” says Richardson.

WhyAfrica visited Trigon Metal’s Kombat mine earlier this month as part of its Southern Africa Overland Road Trip.

New deal accelerates Trigon’s Kombat development in Namibia

The WhyAfrica Southern Africa Overland Road Trip will take us through five countries in 44 days. During this time, we will drive more than 9700km on the good roads, the bad roads, dirt roads and tarred roads, to visit close to 30 projects in the mining, agriculture, energy, infrastructure, tourism, conservation, and development sectors.

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Leon Louw is the founder and editor of WhyAfrica. He specialises in natural resources and African affairs.        

WhyAfrica provides you with business intelligence that matters. WhyAfrica specialises in African affairs and natural resources. Africa is our business, and we want it to be yours too. To subscribe to WhyAfrica’s free newsletter or digital magazine, and for more news on Africa, visit the website at www.whyafrica.co.za or send a direct message. WhyAfrica launched its first ever digital magazine in November 2021. The company will undertake a road trip through South Africa, Namibia, Zambia, Zimbabwe and Botswana in June and July 2022. If you are interested in sponsorship or advertising opportunities, please contact me at leon@whyafrica.co.za. We have a wide range of different packages and combo deals to give your company the greatest exposure to a rapidly growing, African readership.  

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New deal accelerates Trigon’s Kombat development in Namibia       

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