04:34 PM EST, 12/16/2024 (MT Newswires) -- Trigon Metals ( PNTZF ) after close of trading Monday signed a binding loan agreement with Horizon Corp. for up to $5 million to advance the Kombat Mine in Namibia.

The loan gives Horizon exclusivity to negotiate the purchase of Trigon's interest in the mine for $30 million, with potential follow-up payments of $10 million to $20 million.

If completed, the sale will allow Trigon to focus on its other exploration projects and strengthen its financial position, while ensuring operational continuity for the Kombat Mine.

"This deal is a decisive win for the company and shareholders. We had been committed to operating and growing the Kombat mine but this deal offers the company and shareholders an opportunity to maximize growth for the company as a whole." chief executive Jed Richardson said. "The agreement allows us to realize significant value from the Kombat Mine in an expensive and uncertain funding market while ensuring stability and continuity for the workforce at site."

Trigon shares closed unchanged at $0.63 on the TSX Venture Exchange.