Trigon Metals Inc. has announced an amendment to its agreement with Horizon Corporation Limited concerning the sale of its 80% stake in the Kombat Mine in Namibia. The revised agreement introduces a restructured financial arrangement designed to bolster Trigon's financial flexibility while preserving its exposure to the mine's future success.

The amended agreement reflects a collaborative effort to optimize the transaction for both parties. Key changes include a reduction in the principal loan amount from Horizon to Trigon to $4,000,000, distributed across five tranches, and a $500,000 investment by Horizon in Trigon’s private placement offering. A further $2,000,000 loan option has been added, providing Trigon with additional financing flexibility prior to shareholder approval of the sale.

The purchase consideration for the Kombat Mine has been adjusted to $24,000,000, payable in eight equal quarterly installments. Critically, payments beyond the initial installment are contingent upon securing at least $10,000,000 in third-party debt financing for the Kombat Mine's development within 18 months of the transaction's approval. This condition safeguards Trigon's interests and ensures the mine's development is adequately funded. In the event that the third-party debt financing is not secured within the 18-month timeframe, Horizon has the option to either proceed with the installment payments or return 90% of the Kombat Mine shares to Trigon, with all capital contributed by Horizon being converted to debt repayable by Trigon.

The proposed transaction remains subject to shareholder approval, third-party approvals, regulatory clearance, and TSX Venture Exchange approval.

The amended agreement also incorporates adjustments to payment terms related to outstanding liabilities with IXM S.A. and Sprott Private Resource Streaming and Royalty (B) Corp. ("Sprott"). A key feature is the introduction of a follow-on payment structure tied to the London Metal Exchange (LME) copper price and future mill expansion at the Kombat Mine, offering Trigon further potential financial gains based on market conditions and operational milestones. These follow-on payments are linked to the achievement of specific production targets and copper price thresholds, incentivizing both production growth and capitalizing on favorable market conditions.

The strategic rationale behind these revisions is to enhance Trigon’s financial position while allowing the company to concentrate on its other core projects, notably the Kalahari Copper Project and the Safi Silver spinout. By restructuring the deal, Trigon gains access to near-term capital, minimizes shareholder dilution, and retains exposure to the Kombat Mine’s upside potential. Horizon, on the other hand, assumes leadership in the next phase of the Kombat Mine’s development.