Kombat Mine in Namibia wouldn't have come without problems to Trigon Metals in 2022

Trigon Metals' idea to restart the Kombat Mine in Namibia after the mine flooded and closed in 2008 would have come without problems. 

But Trigon persevered and is still working through the problems by signing up streaming agreements and non-brokered private placements to raise funds to keep the mine going.

5 January 2022

Trigon announced the first copper concentrates produced at the Kombat Mine in Namibia. 

6 January 2022

Trigon Metals Inc. said it intended to complete a non-brokered private placement of up to 4,444,444 units for US$0.45 per unit for gross proceeds of up to US$2m.

Each warrant would entitle the holder to acquire one share for US$0.50 for 24 months following the date, subject to an acceleration provision whereby if, at any time after the expiry of the statutory hold period, the Shares trade at US$0.75 or higher on the TSX Venture Exchange for 30 consecutive days, the company shall have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the company issues a news release announcing that it has elected to exercise the acceleration right.

The company intended to use the net proceeds from the Offering for the recommencement of mining at the Kombat mine and working capital and general corporate purposes.

10 January 2022

Trigon Metals increased its previously announced non-brokered private placement financing from total gross proceeds of up to US$2m to US$4m. The offering would consist of up to 8,888,888 units at US$0.45 per unit.

7 February 2022

Trigon Metals closed a non-brokered first tranche of its previously announced non-brokered private placement financing of units. 

The company issued 3,312,642 units at US$0.35 per unit for aggregate gross proceeds of US$1,159,425. Trigon expected the second tranche of confirmed orders totalling US$863,029.15.

In addition, Trigon granted 1.65 million options to contractors. The options are exercisable at 34 cents per share. The option term is five years from the date of the grant. 

16 February 2022

 Trigon Metals closed a non-brokered final tranche of its previously announced non-brokered private placement financing of units. The company issued 3,848,665 units at US$0.35 per unit for aggregate gross proceeds of US$1,347,032.

28 February 2022

Trigon Metals delivered the first shipments of copper concentrate from the mine to IXM warehouses in Walvis Bay. 

The truckload contained 31 dry metric tonnes of concentrate, grading 20.41% copper and 265 g/t silver. The truckload is the first 400 tonnes of concentrate now produced and stockpiled at the Kombat Mine. 

Trigon CEO Jed Richardson said the mill was operating at a steady state at 70% capacity, producing over 35 tonnes of concentrate per day. 

"Provisional payment is 90% of the projected proceeds for the metal content determined by an independent laboratory on-site at the mine, with the balance of payment adjusted on final assays by IXM." 

IXM is a global merchandizer of base and non-ferrous metals, with expert teams on every continent. 

7 March 2022

Trigon Metals closed the order books on its previously announced non-brokered private placement of up to 4,862,500 units at US$0.40 per unit for gross proceeds of up to US$1,945,000.

28 April 2022

Trigon Metals entered into a convertible security funding agreement dated 27 April 2022 with Lind Global Fund II, LP, owned by The Lind Partners, LLC, a New York-based institutional fund manager.

Under the terms of the Agreement, Trigon has agreed to issue Lind a convertible security in the principal amount of C$5,500,000, with such proceeds being used for general working capital and to repay all outstanding amounts owing to IXM S.A. under the credit facility between IXM and the Company.

Lind has agreed to invest C$5,5m, less a commitment fee of C$165,000, in exchange for a convertible security with a face value of C$6,6m, representing a principal amount of C$5,5m and a pre-paid interest amount of C$1,1m. 

Trigon will begin repaying the Convertible Security in C$275,000 monthly instalments. Lind will have the right to convert any portion of the Principal Amount (less the commitment fee) into shares of Trigon at a price per share of C$0.335. Pre-paid interest will accrue 24 months from closing and be calculated at the end of each calendar month. 

Trigon had the option to buy back the remaining outstanding Convertible Security in cash at any time with no penalty. 

If Trigon exercises the buyback option, Lind can convert (i) up to 33.3% of the outstanding Principal Amount at the Conversion Price into Common Shares and (ii) up to 100% of the total Pre-Paid Interest at the Interest Conversion Price into Common Shares. 

Trigon would issue Lind 15,925,373 Common Share purchase warrants exercisable for 24 months at an exercise price of C$0.35 per Common Share.

5 May 2022

Trigon Metals Inc. closed the funding of C$5,500,000 under its previously announced convertible security funding agreement with Lind Global Fund II, LP, an entity managed by The Lind Partners, LLC, a New York-based institutional fund manager.

Lind invested $5,5m, less a commitment fee of C$165,000, in exchange for a convertible security with a face value of C$6,6m representing a principal amount of C$5,5m and a pre-paid interest amount of C$1,1m. 

Trigon issued Lind 15,925,373 Common Share purchase warrants exercisable for 24 months at an exercise price of C$0.35 per Common Share.

24 May 2022

Trigon Metals received a loan of US$2,5m from Sprott Mining Inc.

The Sprott Loan has a term of 180 days and will accrue interest at 12% per annum, payable in arrears. 

Trigon issued 2,5 million common share purchase warrants to Sprott each exercisable for one common share of Trigon at C$0.47 per common share for one year from the date of their issuance, subject to customary adjustment provisions. 

Trigon and Sprott agreed to a stream of silver deliveries equal to 8.25% of the silver from the Kombat Mine as contemplated in the credit agreement. Each Stream Warrant would, if issued, have a strike price at a 35% premium to the five-day VWAP share price for the five days before the execution of a streaming agreement.

7 July 2022

Trigon Metals said the Kombat Mine employed 220 and an additional 80 women employed on a part-time rotational basis as part of the company’s community garden agricultural development project.

It said 1,103,312 tonnes of material had been mined, including pre-stripping, and 120,775 tons of ore had been mined at an average grade of 0.92% copper and 6.9 g/t silver.

Thirty-four thousand seven hundred sixty-two tonnes of ore grading 0.85% copper and 10.97 g/t silver have been fed into the mill and processed, producing 861.4 tons of concentrate grading 19.75% copper and 271.3 g/t silver, and 548 tonnes of concentrate have been shipped and revenue received.

20 July 2022

Trigon Metals entered into a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. and Sprott Mining Inc. for a US$27.5 million silver and copper stream for its Kombat Mine in Grootfontein, Otjozondjupa Region of Namibia.

The US$27.5mn consisted of US$25m from Sprott Streaming and US$2,5m from Sprott Mining. 

Trigon agreed to sell and deliver 100% of the silver produced from the Kombat Mine to Sprott. 

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 mineralization. 

The phase two underground development takes advantage of a 750m, 2,000 tpd production shaft built and ready for operation. 

Sprott Streaming would 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 was for the life of mine, restricted to the Kombat Project and did not include the Silver Hill Project or any new project Trigon may acquire. 

"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 the option to restore that exposure for our shareholders,” Richardson said.

2 August 2022

Trigon Metals revised its mine plan based on new information from mining the Kavango Open Pit to reduce mine-wide operating costs at its Kombat Mine in Namibia.

Trigon Metals also suspended operations to optimize its newly increased working capital by reconfiguring the mine plan to focus on higher grade and more consistent orebodies drilled in the Kavango pit and Kombat trend mineralization. 

During the production pause, drilling continued on the Kombat Trend to build a new mine plan around the higher grade and more consistent mineralization discovered in this area. 

14 October 2022

Trigon Metals said Lind had exercised its right to convert C$270,000 of accrued interest into 2,000,000 common shares of Trigon at a conversion price of US$0.135 per Trigon share.

24 October 2022

Trigon Metals signed a definitive agreement with Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc. for a US$37.5m silver and copper stream for its Kombat Mine.

Trigon would sell and deliver to the investors 100% of the silver produced from the Kombat Mine. 

The Kombat Mine expansion aims to increase annual copper production and reduce forecasted operating costs. Proceeds will primarily be used to expand the plant capacity to 60,000 tonnes per month and complete ongoing works to dewater the mine, develop the Asis West underground mine, and for general corporate and working capital purposes.

The advance amount under the Stream Agreement comprised cash payments aggregating US$37,5m, with an initial tranche of US$15,825,000 advanced today. US$2,625 of the initial advance was allocated to repayment of the amounts owing to Sprott Mining under the loan agreement dated 24 May 2022, and C$5,5m used to repay Lind Global Fund II, LP. 

Trigon would pay the remaining US$21,675,000 upon establishing a deposit holding account subject to an agreement that satisfies the Investors with the financial institution and other standard closing conditions. 

Trigon received 10% of the spot as payment for all silver and copper delivered into the stream as determined on the second day before the relevant delivery. The balance was applied as a credit to the advance amount. 

Trigon would also deliver 1.625% of the copper production in recognition of the US$10m added to the agreement starting at 0% while mining from the open pit, increasing to 6.5% during the in-term period of underground mining.

7 December 2022

Trigon Metals received the remaining US$21,8m from Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc. 

The proceeds from the Transaction will primarily be used to expand the plant capacity at the Kombat Mine located in Grootfontein, Otjozondjupa Region of Namibia to 60,000 tonnes per month and complete ongoing works to dewater the mine, develop the Asis West underground mine, and for general corporate and working capital purposes.

14 December 2022 

Trigon Metals said the TSX Venture Exchange had approved the extension of the exercise period of 11,649,996 share purchase warrants, all of which are exercisable at US$0.20 per common share by 12 months to 8 January 2024.