TORONTO, December 03, 2024--(BUSINESS WIRE)--Trigon Metals Inc. (TSX-V: TM) ("Trigon" or the "Company") announces it has received an indicative term sheet (the "Term Sheet") from Horizon Corporation Limited ("Horizon") for a proposed loan of USD$5 million to allow for the conclusion of the evaluation and due diligence for a sale of 100% of its ownership interest in the Kombat Mine in Namibia to Horizon. (the "Proposed Transaction").

The Proposed Transaction remains subject to certain conditions including completion of satisfactory due diligence, the negotiation and execution of a definitive agreements between Trigon and Horizon, third party approvals, shareholder approval and regulatory approval, including, by the TSX Venture Exchange ("TSXV").

Key Highlights of the Proposed Transaction

• The Term Sheet includes a range of USD$30-50M in cash, and a limited royalty that would be paid to Trigon from the Kombat mines copper production.

• Horizon will loan Trigon USD$5 million (the "Loan") as follows:

  • USD$500,000 within 7 days of entering into a binding loan agreement

  • USD$2 million in December 2024 subject to satisfying certain closing conditions including Horizon receiving satisfactory security for the Loan, entering into binding documentation for the Proposed Transaction and Horizon completing its preliminary due diligence of the Proposed Transaction (the "Tranche 2 Payment"); and

  • USD$2.5 million within 45 days of the Tranche 2 Payment.

• The Loan shall have a term of 24 months and interest rate per annum of 15%.

• Trigon will grant Horizon an exclusivity to finalize asset sale agreement in exchange for the advancement of the loan, with a break free proportional to the amount of the loan that has been advanced.

In addition to the proceeds of the Proposed Transaction, Trigon Metals will retain the Kalahari Copper Project in Namibia and will also benefit from the planned spinout of the Safi Silver Moroccan exploration projects, Silver Hill and Addana Silver Polymetallic project.

Jed Richardson, CEO and Executive Chairman of Trigon Metals, commented, "Agreeing to a sale of the Kombat Mine, is a very difficult decision. We are pleased that Horizon has come forward with a competitive offer for the Kombat Project, with a commitment to make the future investments to fully realize the growth and potential of the project. The Proposed Transaction would cap dilution and offers shareholders risk free benefit from the future success of the asset. We look forward to working closely with Horizon to settle final terms, reach definitive agreements and complete the Proposed Transaction."