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Trigon Metals Signs US$5 Million Project Finance Facility with IXM and Agrees Offtake Terms
TORONTO, ON / ACCESSWIRE / October 28, 2021 / Trigon Metals Inc. (TSX-V:TM) ("Trigon" or the "Company") is pleased to announce that it has entered into a credit
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[{"type":"text","content":" TORONTO, ON / ACCESSWIRE / October 28, 2021 / Trigon Metals Inc. (TSX-V:TM) (\"Trigon\" or the \"Company\") is pleased to announce that it has entered into a credit agreement with IXM SA (\"IXM\") for a US$5 million project finance facility to provide the next tranche of funding required for the restart of the Kombat Mine. The parties have also agreed on concentrate offtake terms for the offtake of copper concentrate by IXM from the Company's Kombat Mine in Namibia. IXM is a global merchandiser of base and other non-ferrous metals, with expert teams on every continent. It is among the top copper, zinc, and lead concentrate, and cobalt merchants internationally and is a leading trader of refined base metals. It is already active in Namibia, with a strong track record in that region, making it the ideal partner for the Kombat Mine as it commences production. IXM is fully owned by the CMOC group, which is an international mining company with operations across the world and one of the leading suppliers of copper, cobalt, molybdenum, tungsten, niobium and phosphate fertilizer products. Financing Facility Trigon and its Namibian subsidiary, Trigon Mining (Namibia) (Pty) Ltd (\"Trigon Namibia\"), have entered into a credit agreement with IXM for a US$5 million project finance facility (the \"Facility\"), the proceeds of which will be used for capital and operating expenditure for the restart of the Kombat Mine. The Facility is expected to be drawn down in two tranches of US$2.5 million each. The drawdowns are subject to various conditions precedent, including signature of the offtake agreement as referred to below, receipt of applicable board of directors, and regulatory approvals, as well as confirmation of further funding support from Trigon as required. The Facility is repayable over 36 months, commencing 6 months after the initial drawdown. Trigon Mining will pay to IXM a commitment fee of 3.2% of the Facility amount and an arrangement fee of 1.0% of the Facility amount, each fee payable pro rata based on the amount of each tranche. Trigon will provide an unsecured guarantee of the obligations under the Facility, Trigon Namibia will provide certain security over substantially all of its assets that do not require third party approval to charge and Kombat Holdings Namibia (Pty) Ltd. will pledge its shares of Trigon Namibia to IXM a...