The Company said the agreement is due to the need to the use of land around the Kombat Mine for the continued development of its open pit mining operations, including the establishment of the mine’s tailings facility. Construction of the tailings facility began in September 2021, and work is on schedule to coincide with start-up of ore processing by the end of 2021.
The total to be paid by Trigon to KVP will be C$1,961,606 for a lease period of the duration of the mining licences held by Trigon. KVP will further receive 200,000 stock options to acquire 200,000 shares in Trigon at an exercise price of $0.46. The options will vest immediately and will be exercisable for a period of three years from date of issue. The grant of the options is subject to the approval of the TSX Venture Exchange.
In connection with the Lease Transaction, Trigon has agreed to transfer a 10% equity interest in Trigon’s wholly owned subsidiary, Gazania Investments Nine (Proprietary) Limited valued at C$50,000 to Texel Mining and Exploration (Proprietary) Limited. Gazania holds the Copper King Extension ground surrounding the Kombat Mine, 35km of mineralized strike length in the Otavi valley. The transfer of the equity interest of Gazania to Texel remains subject to the approval of the TSXV.
Knowledge Katti of Kombat Village Properties, commented, “The imminent onset of ore processing during December 2021 represents an important milestone in the revival of economic activity for Kombat and its inhabitants as well as an important contributor to reposition Namibia as a prime global mining destination. The current commitment of all stakeholders at all levels to make the project a success will ensure ongoing momentum and the ultimate successful implementation of the project.”
“Following our exploration success in and around the open pit, controlling the land we need to grow is an important step. We see the town of Kombat, Kombat Village Properties and Knowledge Katti as important stakeholders in our efforts and this agreement helps to align our interests going forward. Tangible progress is being made on a daily basis at site, and plant commissioning remains on track for later this month,” Jed Richardson, President and CEO of Trigon, commented.