News Summary
The most recent news (December 23, 2025) confirms the successful closing of the sale of Trigon’s 80% interest in the Kombat Mine in Namibia to Horizon Corporation Limited. Key terms include:
– Cash consideration of US$24,000,000 payable in eight equal quarterly instalments, with the first payment beginning April 4, 2026.
– A reduction of US$3,975,494 in debt owed by Trigon to Horizon.
– Contingent production payments ranging from US$3.5M to US$13M based on copper prices once specific production milestones are met.
– A 1.0% Net Smelter Return (NSR) royalty on copper if prices exceed US$4.00/lb.
– The assumption of an intercompany loan of approximately $57.5M by the purchaser.
Material Impact
This transaction is a fundamental “reset” for the company. Historically, Trigon was a producer, but the January 2025 flooding at Kombat (pump failures) forced a suspension of operations and massive retrenchments, pushing the company to the brink of insolvency.
– Financial Survival: The Q2 2025 financials (period ending Sept 30) showed a total deficiency of $12.6M and only $1.38M in cash. This deal removes the massive liabilities associated with Kombat and provides a non-dilutive path to funding.
– Strategic Pivot: Trigon is now effectively an exploration company focused on the Addana and Silver Hill projects in Morocco.
– Timing Risk: A critical detail is that the first US$3M installment does not arrive until April 2026. The company must survive on its current limited cash or further bridge loans for the next three months.
– Valuation Change: The market is currently valuing the company at a discount to the US$24M (approx. $33M CAD) face value of the cash payments, reflecting skepticism regarding the 2-year payment schedule and counterparty risk.
Catalysts
– Addana Drill Results: Initial results from the 2,000m drill program launched in October 2025 at the Addana project in Morocco.
– Cash Management: How the company bridges the gap between now and the first US$3M payment in April 2026. Watch for any small “bridge” financings.
– Copper Prices: Sustained prices above US$4.00/lb are required for the 1% royalty to ever become active once the mine restarts under Horizon.
Materiality Conclusion
The news is Material – Positive. It validates management’s strategy to exit a high-capex, disaster-prone operating asset in favor of becoming a well-funded explorer. While it is not a “Game Changer” in terms of an immediate cash windfall (due to the deferred payment schedule), it ensures the company avoids bankruptcy and keeps the lights on for Moroccan exploration.
