- Trigon Metals Inc. (TM) has signed a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. and Sprott Mining Inc. for US$27.5 million
- Trigon it will sell and deliver any silver produced from the Kombat Mine to Sprott
- Trigon has the option to buy back half of the stream but expires after June 2027
- Proceeds will be used to complete ongoing works for the mine, as well as for general corporate and working capital purposes
- 2.5 million Trigon warrants will be issued to replace the ones involving Sprott Mining announced in May
- Trigon Metals Inc. (TM) is down 2.38 per cent and is trading at $0.20 per share as of 3:07 p.m. ET
Trigon Metals (TM) has signed a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. and Sprott Mining.
The term sheet is for a US$27.5 million silver and copper stream at its Kombat Mine in Namibia.
According to the company, 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.
Trigon stated it would sell and deliver any silver produced from the Kombat Mine to Sprott. The company expects the mine expansion to increase annual copper production and reduce operating costs.
Trigon has the option to buy back up to 50 per cent of the stream in a single payment by paying in cash to Sprott Streaming. The amount owed varies depending on the year or time of year Trigon decides to exercise this option.
The proceeds will be used to complete ongoing works to dewater the mine, re-establish services, continue exploration drill work, a feasibility study for underground mining, and general corporate and working capital purposes.
The US$27.5 million comprises US$25 million from Sprott Streaming and US$2.5 million from Sprott Mining. The amount from Sprott Mining will be set off against the US$2.5 million loan from Sprott Mining announced in May.
Trigon outlined the deal to include issuing 2.5 million of its warrants to Sprott Mining to replace the exact amount published in May.
Each stream warrant will be exercisable for one common share of Trigon for a three-year period.
Trigon Metals Inc. (TM) is down 2.38 per cent and is trading at $0.20 per share as of 3:07 p.m. ET