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Trigon intends to raise C$5 million to restart Namibia copper mining venture

Trigon Metals, a Canadian junior, intends to raise C$5 million to restart the Kombat copper mine in Namibia’s Otavi mountainlands.

On Tuesday, the TSX-V-listed explorer and developer announced a non-brokered private placement financing of up to 12.5 million units at C$0.40 per unit.

A common share and one-half of a common share purchase warrant would be included in each unit. Each warrant entitles the holder to one share at C$0.50 per share for 24 months following the closing of the offering.

The company’s stock fell sharply on Tuesday, closing 13.5% down at C$0.42 a share.

Trigon’s Kombat project comprises three mining licences, which produced about 12.46-million tonnes of copper between 1962 and 2008 at a grade of 2.62%.

The company plans to restart open-pit mining at Kombat in late 2021. Its initial target is to produce 4 000 t of copper in concentrate for 2022, by accessing ore from the open pit. This will increase to 14 500 t of copper in concentrate in 2024 when higher grade underground ore will be accessed.

The project has a combined open pit and underground indicated mineral resources of 12.2-million tonnes at 1.94% copper, 13.65 g/t silver and 0.70% lead.

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