Trigon Metals has entered into a definitive agreement to expand its land holding in Namibia, through the acquisition of exclusive prospecting licence 8529, the company announced on Monday.
EPL 8529 is currently held by a Namibian company, Otjiwa Mining, and Prospecting CC and is valid for three years from November 9, 2022 to 8 November, 2025.
The licence surrounds Trigon’s Kombat and Gross Otavi projects in the Otavi Mountain land, a region associated with high-grade copper and silver mineralisation.
EPL 8529 is situated on the Kombat trend, the mineralised structure on which the Kombat project is located, and covers an area of 5,614 hectares in the Grootfontein District of the Otjozondjupa Region, between the towns of Otavi to the west and Grootfontein to the east.
From a geological perspective, the licence represents a potential strike extension of the Kombat project, with various known mineral occurrences on the property.
Trigon management has extensive knowledge of the area and plans to implement an exploration program in conjunction with its ongoing exploration work on the Kombat project areas.
On January 30, 2023, Trigon, together with its Namibian subsidiary, Trigon Mining (Namibia) (Pty) Ltd entered into an agreement with Otjiwa for the acquisition of EPL 8529.
The purchase consideration for the licence comprises a cash price of N$1,750,000 (approximately C$135,449) and N$250,000 (C$19,350) to be settled by the issuance of 84,129 Trigon shares.
The Agreement is subject to customary closing conditions, including approval from the Minister of Mines and Energy in Namibia for the transfer of the Licence from Otjiwa to Trigon Mining and the approval of the TSX Venture Exchange. The Acquisition is an arm’s length transaction.
Jed Richardson, president & CEO of Trigon Metals, commented, “EPL8529 referred to as the Copper King Extension, is an important part of the long-term future of the Kombat mine.
The 35KM of prospective strike length has numerous copper showings that Trigon is eager to test for potential economic deposits of mineralisation.
He said later this calendar year surface drilling for near-term open pit resources will be done then it will move to the new targets on the Copper King.
Meanwhile, the company has engaged Renmark Financial Communications Inc. to amplify its investor relations efforts at an estimated total cost of $63,000 to the company.
The services will be utilised for a period of 7 months, having commenced on 01 January 2023 and ending on 31 July, 2023, continuing monthly thereafter unless otherwise terminated pursuant to the terms set out in the agreement.