TORONTO, July 09, 2018 (GLOBE NEWSWIRE) -- Trigon Metals Inc. (TSX-V: TM ) (“Trigon” or the “Company”) has entered into (i) a loan agreement with Aberdeen International Inc. (“Aberdeen”) pursuant to which Trigon has borrowed $200,000 from Aberdeen (the “200 Loan”); and (ii) a loan agreement with Aberdeen pursuant to which Trigon has borrowed CAD$275,000 from Aberdeen (the “275 Loan”). Each loan is unsecured and subject to an interest rate of 12% per annum. The 200 Loan matures on November 30, 2018 and the 275 Loan matures on December 26, 2018. The Company expects to use the proceeds from the loans to prepare a definitive feasibility study for the Kombat Mine and for general corporate and working capital purposes.
Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), each of the loans constitutes a "related party transaction" as Aberdeen is a related party of Trigon as it owns more than 10% of the issued and outstanding common shares of Trigon. The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the value of the loans is less than 25% of the Company’s market capitalization.
Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations in Namibia, one of the world’s most prospective copper regions, where it has substantial assets in place. The Company continues to hold an 80% interest in five mining licenses in the Otavi Mountain lands, an area of Namibia widely recognized for its high-grade copper deposits. Within these licenses are three past producing mines including the Company’s flagship property, the Kombat Mine.
For further information, contact:
Stephan Theron +1 (416) 861 5899 stheron@trigonmetals.com
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the loans, use of proceeds of the loans and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
