Trigon Metals Inc.’s $5 Million Credit Agreement with IXM SA

Cassels assisted Trigon on the deal.

Trigon Metals Inc. (TSX-V:TM) has entered into a credit agreement with IXM SA 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.

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.

The Kombat Copper Project is the flagship project of Trigon, with the Company’s mining and prospecting licence areas covering an area of more than 7,500 ha in the Otavi Mountainlands in Namibia. 

Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. 

IXM is a global merchant in base and precious metals sourced from responsible producers.

The Cassels’ team comprised of Carla Potter (Picture), Lauren White, Andrè Boivin and Cathy Mercer. 

Involved fees earner: André Boivin – Cassels Brock & Blackwell LLP; Cathy Mercer – Cassels Brock & Blackwell LLP; Carla Potter – Cassels Brock & Blackwell LLP; Lauren White – Cassels Brock & Blackwell LLP;

Law Firms: Cassels Brock & Blackwell LLP;

Clients: Trigon Metals Inc. ;

Author: Sonia Carcano