Business
Trigon Metals Announces US$27.5 Million Silver Streaming Term Sheet with Sprott Streaming
TORONTO / Jul 20, 2022 / Business Wire / Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has entered into a non-bindin
About this update from Safi Silver Corp.
[{"type":"text","content":"TORONTO / Jul 20, 2022 / Business Wire / Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has entered into a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. (\"Sprott Streaming\") and Sprott Mining Inc. (“Sprott Mining”, collectively the “Investors”) for a US$27.5 million silver and copper stream (the \"Transaction\") for its Kombat Mine located in Grootfontein, Otjozondjupa Region of Namibia. The Streaming Transaction Pursuant to the Transaction, Trigon shall sell and deliver to Sprott 100% of silver produced from the Kombat Mine. 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 mineralization. The phase two underground development takes advantage of a 750m, 2,000 tpd production shaft that is built and ready for operation. However, the Asis Far West area of mineralization has not been quantified into an NI43-101 Resource Estimate nor has an economic study been completed for this phase of the development. 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 or any new project Trigon may acquire. At its election, the Company may buy back up to 50% of the Stream in a single payment by paying in cash to Sprott Streaming, the indicated multiple of the drawn advanced payment below on or before June 30 of the indicated year; after June 30, the buyback amount would refer to the following year. After June 30, 2027, the buyback right expires. 2024 1.37x $18,837,500 2025 1.40x $19,250,000 2026 1.43x $19,662,500 202...