TORONTO, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has completed the acquisition (the “Transaction”) of a 100% equity interest in Technomine Africa S.A.R.L. (“Technomine”), which owns a 100% interest in the Silver Hill Project (“Silver Hill” or the “Project”) in Morocco.
Trigon has received approval of the transaction from the TSX Venture Exchange and has completed the Exchange's final filing requirements for closing the transaction including, but not limited to; receiving a satisfactory title opinion on the licences comprising the high potential Silver Hill and Tama Doult properties located in the Anti-Atlas region of Morocco, and filing the geological report (the “Report”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for exploration of Silver Hill.
The Silver Hill Transaction is part of the Company's continued focus to strategically acquire and develop copper and silver properties in favourable African mining jurisdictions.
Jed Richardson, President and CEO of Trigon Metals, commented, “In a world recovering from COVID, the acquisition of the Silver Hill property has added importance. The value of silver as a precious metal and store of value cannot be over emphasized in the face of government stimulus around the world. That said, we are in the midst of a structural shift that should see the world seeking to diversify its supply chains from reliance on China for manufacturing, and copper should see extraordinary demand when the world economy emerges on the other side of this crisis.”
Silver Hill Project Overview
The Transaction is centred around the Silver Hill Project (see press release dated November 19, 2019), a 16km2 property in the Anti-Atlas region of Morocco, already home to Africa’s major silver mines (Imiter, Zgounder). Surface exploration shows copper and silver mineralization at high grades distributed over a wide surface area. Slags from ancient workings indicate historical large scale mining for silver.
Morocco is a favourable jurisdiction for mining, with an established industry producing at a rate of approximately 40 million tonnes of minerals per year. The country is a friendly business environment with a strong mining history, but very little systematic modern exploration.
Highlights of Silver Hill
- Ancient slags distributed widely across one third of the concession indicate a history of primitive metal recovery, most likely for silver.
- Abundance of visible copper minerals at surface, as well as old workings and slags on the property on surface and in-situ indicate excellent potential for a copper prospect
- The Project is easily accessed via paved national highways, with a well-maintained gravel road sufficient to be used for an exploration program.
The full technical report entitled “NI 43-101 – Technical Report on the Silver Hill Copper and Silver Project, Morocco” with an effective date of September 24, 2020 has been posted to the Company’s website at https://www.trigonmetals.com and on SEDAR under Trigon’s issuer profile.
Response to COVID-19 in Morocco
Morocco continues to comply with the recommendations of the World Health Organization to reduce the spread of the virus. Trigon does not anticipate any delays to initializing its exploration program at Silver Hill as a result of COVID-19. The local team is ready to commence work on the Project beginning with a sampling program.
Terms of the Transaction
The Company has acquired a 100% equity interest in Technomine. Technomine owns 100% of the rights to the Silver Hill Project. As consideration, Trigon has paid to the Vendors CAD $500,000 in cash and issued 6,000,000 common shares to the vendors (the “First Payment”). On the one-year anniversary of the closing of the Transaction, Trigon must pay to the vendors CAD$400,000, and issue such number of Trigon common shares equal to CAD $250,000 (the “Second Payment”).
Upon the completion of an independent National Instrument 43-101 compliant mineral resource estimate at the Project showing at least 100,000 tonnes of contained copper and/or equivalent, Trigon shall issue such number of shares equal to CAD$1,250,000 to the vendors.
In addition, the Company has paid CAD$25,000 and issued 300,000 common shares to Majilias Inc. (the “Finder”) for its role as an arm’s length finder. The Finder shall also be entitled to a finder’s fee of 5% of the cash and share consideration comprising the Second Payment, when paid by Trigon.
Qualified Person
The technical information presented in this press release has been reviewed and approved by Fanie Müller, P.Eng, VP Operations of Trigon, who is a Qualified Person as defined by NI 43-101.
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 licences in the Otavi Mountain lands, an area of Namibia widely recognized for its high-grade copper deposits. Within these licences are three past producing mines including the Company’s flagship property, the Kombat Mine.
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the prospectivity of the Project, the Company’s ability to explore the Project and produce a NI 43-101 mineral resource estimate, the impact of COVID-19 on the Company’s operations, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat operations, 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.