Trigon Metals Inc has placed an order with Epiroc South Africa Pty Ltd to purchase underground mining equipment to the value of US$8.9 million. This equipment will comprise the majority of the underground mining fleet for the restart of mining from the Asis West shaft at the company’s Kombat copper mine in Namibia, where production is scheduled to ramp up from April 2024.
The purchase will be done through the company’s Namibian subsidiary, Trigon Mining (Namibia) Pty Ltd, which has received approval from Epiroc Financial Solutions AB (EFS) for equipment finance for 85% of the purchase consideration, with a 15% down payment to be paid upfront. The facility term is 60 months from the shipment date of each item of equipment, and interest will accrue at 10.95% per annum. Repayments will be made in 55 monthly payments, commencing six months after the respective dates of shipment.
An arrangement fee of 0.75% of the financed amount will be payable on signature of a supplier credit agreement. The facility will be secured by the mining equipment and a guarantee from Trigon. The above terms are subject to the finalisation of a supplier credit agreement between the parties and regulatory, board and other approvals as required. Mining equipment is expected to be received on-site at Kombat between October 2023 and March 2024.
Jed Richardson, President and CEO, commented: “We are pleased to be working with Epiroc and thank them and the team members that worked to put this financing package in place in a timely fashion. This allows us to build out our underground fleet while we are just starting to generate cash flow at the open pit.”
At site, the work at the production plant has been completed on schedule. Crushers and mills have been started. The coarse ore bins are being filled and first concentrate was produced on Friday, August 18, 2023, the details of which will be shared in a subsequent release. Approximately 25,000 t of ore is now stockpiled on the run of mine pad.
The Kombat mine is one of the most significant copper mines in Namibia. Mining operations originally commenced in 1962, producing until 2008, and with total output reaching 12.46 Mt of ore grading 2.6% copper on average.
The mine has over US$150 million worth of usable infrastructure in place. That includes a 1,100 t/d mill, an 800 m shaft with two other vertical shafts, extensive underground workings, tailings facility, ramp systems, mine buildings and concentrator. Its close proximity to the port of Walvis Bay and to one of only five commercial-grade smelters in Africa (located in the town of Tsumeb) is an additional benefit to the project.
