Kombat sold for N$428.7m

The sale of Namibia’s copper mine, Kombat, has officially been concluded at a cost of N$428.7 million, or US$24 million.

This comes as Canadian company Trigon Metals on 27 May concluded the deal with Horizon Corporation and Kamino Minerals and sold its 80% majority shareholding.

According to a press release by Trigon Metals on Thursday, the consideration for the transaction is all-cash.

Trigon Namibia founding shareholder Knowledge Katti says he strongly supports the transaction and Horizon’s move as the new investor in the Kombat mine.

He says the transaction would create new jobs for the community as well as improve people’s living standards.

“As a proud Namibian shareholder, I wholeheartedly support Horizon Corporation as the new investor in the Kombat Mine. Horizon’s proven experience in the mining sector positions them to successfully reopen the mine, creating much-needed jobs for our community. The people and children of the Kombat area urgently need this project to resume operations, as it will significantly boost living standards and bring economic hope to our region,” Katti says.

Trigon Metals executive chairman and chief executive Jed Richardson says with the signing of the definitive agreement, the company is taking the final steps toward securing shareholder approval.

He explains that upon a successful vote, US$2 million will be advanced to Trigon, forming part of the $24 million the company will receive ahead of the official closing process.

“Subject to Namibian completion approvals, the balance will follow in structured payments after nine months in which case we begin receiving US$3 million instalments quarterly and the US$4 million outstanding loan will be forgiven. These proceeds, combined with the potential production bonus and ongoing royalty, provide a strong and flexible foundation for our continued growth at Silver Hill, Addana, and the Kalahari Copperbelt,” he says.

The Transaction will be implemented by way of the acquisition by Kamino Minerals, an affiliate of Horizon.

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