As moves to restart mining operations at Kombat Mine in Namibia gather momentum, Canadian company Trigon Metals Inc.
has placed an order with Epiroc South Africa (Pty) Ltd to purchase underground mining equipment to the value of nearly US$9 million (N$170 million).
According to a statement issued by the Toronto-listed company yesterday, the equipment will comprise the majority of the underground mining fleet for the restart of mining from the Asis West shaft at the mine, where production is scheduled to ramp up from April 2024.
“The purchase (worth almost US$9 million) will be done through the company’s Namibian subsidiary, Trigon Mining Namibia (Pty) Ltd, which has received approval from Epiroc Financial Solutions AB for equipment finance of 85% of the purchase consideration (almost US$7,6 million), with a 15% down payment (almost US$1 million) to be paid up front,” the statement says.
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, the statement says.
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 mining equipment is expected to be delivered on site at Kombat between October this year and March 2024.
Jed Richardson, the president and chief executive officer of Trigon, says: “We are pleased to be working with Epiroc, and thank them and the team members who 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,” he says.
Planned production started from the open pit in May, and 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 18 August.
Approximately 25 000 tonnes of ore is now stockpiled on the run of mine pad.
The Kombat Mine is one of the most significant copper mines in Namibia.
The mine has over US$150 million worth of usable infrastructure in place.
That includes a 1 100t per day mill, an 800m shaft with two other vertical shafts, extensive underground workings, tailings facility, ramp systems, mine buildings and concentrator.
In Namibia, the company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognised for its high-grade copper deposits, where the company is focused on exploration and the redevelopment of the Kombat Mine.
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