TSX-V: TM | FRA: TZU2 | OTCQB: PNTZF

Trigon Metals

Building A Mid-Tier African Copper Producer

News

Trigon Metals Strengthens Its Team to Usher in Next Phase of Company Growth

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TORONTO – Aug 25, 2022 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce the appointment of Mr. Mohammed Benharref to the Company’s Board of Directors, effective immediately. In addition, Mr. Aidan Sullivan will formally join Trigon as VP, Investor Relations, effective immediately.

Jed Richardson, President and CEO of Trigon, commented, “We are very pleased to welcome Mohammed to the Trigon Board of Directors, and to also officially welcome Aidan to the team as the Company moves forward in our mission to become the leading mid-tier copper producer in Africa’s best jurisdictions. These adjustments to our human resources come concurrent to the ongoing administrative work to finalize the previously announced Silver Streaming Agreement, with terms unchanged.”

Mr. Benharref is a founding partner of Technomine Africa, the Moroccan mineral prospecting company Trigon acquired in 2020 responsible for the discovery of the Silver Hill copper-silver-cobalt exploration project. He has more than 30 years of geological experience, including mineral exploration, geological mapping, applied geology and geosciences. He has held key positions within Managem Ltd (SA), a Moroccan mining and engineering conglomerate, and is the founder of Morocco-based mining services company, CAP Resources, which conducts large-scale projects on behalf of the government and major Moroccan mining companies alike. Mr. Benharref graduated from Marrakech University (Morocco) with a Doctorate in Structural Geology defended in 1991.

Mr. Sullivan previously assisted Trigon in establishing relationships with key suppliers and engineering groups in China. Going forward, he will be responsible for coordinating investor relations efforts. He has more than 20 years of experience building and financing both private and public companies in North America and China. Mr. Sullivan has also been engaged as Financial Advisor to many early-stage ventures raising capital from private or institutional investors in natural resources, advanced materials, automotive, technology and media. Mr. Sullivan is a graduate of the University of British Colombia. Pursuant to a consulting agreement with Mr. Sullivan, he will be retained on a month-by-month basis at $7,500 per month with the provision that either party, at its sole discretion, may cancel this agreement by giving thirty (30) days written notice. Mr. Sullivan has been granted 600,000 incentive stock options to acquire common shares at an exercise price of $0.15. The options will be vested at six-month intervals over a period of eighteen months with a term of two years from the date of granting.

The Company has also granted Mr. Benharref 750,000 stock options. The options have an exercise price of $0.15 and will expire five years from the date of grant. The options will vest immediately. The grant of options remains subject to the approval of the TSX Venture Exchange.

Trigon Metals Inc.

Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. Currently, the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat mine. In Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper and silver exploration project.

Cautionary Notes

This news release may contain forward-looking statements. These statements include statements regarding changes to the Company’s management team and Board of Directors; the granting of stock options 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) accept responsibility for the adequacy or accuracy of this release.

Kavango Pit and Kombat Trend Drilling Highlights Strength of New Zone at Trigon’s Kombat Mine

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TORONTO — Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) announces results from drilling of new mineralization targets at Kombat Mine in Namibia (the “Project”), in the area of the Kavango Pit, along the Kombat trend mineralization.

Jed Richardson, President and CEO, commented, “Kavango drilling and the early mining in this area have been very encouraging. Mineralization has been far more consistent and massive, matching the nature of the mineralization we find in the underground mine and other areas of the Kombat trend. These initial results confirm our confidence that our revised exploration and production focus will provide significant upside.”

Highlights of the Drill Results

Holes from the Kavango Pit area:

Hole CenMid01 (azimuth 350.1, dip -77.0)

  • 5.1m of 3.0% copper and 13.6 g/t silver, from 8.0m,
  • And, 6.9m of 1.6% copper and 13.5g/t silver, from 16.1m.

Hole CenMid01A (azimuth 180.0, dip -76.8)

  • 11.0m of 2.6% copper, 75.0m down the hole

Hole CenMid02 (azimuth 201.6, dip -67.4)

  • 9.0m of 2.7% copper and 9.1 g/t silver, from 44.0m

Hole CenMid04 (azimuth 177.8, dip -61.7)

  • 6.0m of 2.4% copper and 5.6 g/t silver, from 55.0m
  • And, 2m of 1.2% copper, from 67m.

Holes from connecting the Kavango mineralization to the East 400 (Fat Avo) area:

Hole Infill05 (azimuth 186.6, dip -70.7)

  • 2m of 1.0% copper from 23.0m
  • And, 4.0m of 0.8 copper from 28.0m
  • And 7.0m of 1.4% copper from 40.0m (see Figure 3)

Hole Infill06 (azimuth 181.0 , dip -73.2)

  • 6.0m of 1.2% copper from 20.0m
  • 10.0m of 1.7% copper from 56.0mHoles are following the mineralization from the area being mined eastward. Holes with the same number and a letter designation are drilled from the same location and different inclinations. Holes marked infill are holes drilled between the Kavango pit zone and the Fat Avo, a high-grade mineralized body previously identified by historic underground drilling. The drilling between the bodies is newly identified mineralization.

Holes are following the mineralization from the area being mined eastward. Holes with the same number and a letter designation are drilled from the same location and different inclinations. Holes marked infill are holes drilled between the Kavango pit zone and the Fat Avo, a high-grade mineralized body previously identified by historic underground drilling. The drilling between the bodies is newly identified mineralization.

Figure 1: Map of Program Area

Figure 1: Map of Program Area The aerial photo shows the area where mining and stripping have already occurred. A yellow “x” represents holes completed, both reported and those for which results are still pending and red “x” represents planned holes to be drilled.

The aerial photo shows the area where mining and stripping have already occurred. A yellow “x” represents holes completed, both reported and those for which results are still pending and red “x” represents planned holes to be drilled.

Figure 2: Open Pit Mining Area The red box is the zone depicted in the drilling map. See Figure 1.Figure 2: Open Pit Mining Area The red box is the zone depicted in the drilling map. See Figure 1

Figure 2: Open Pit Mining Area The red box is the zone depicted in the drilling map. See Figure 1.Figure 3: Drill Core from Hole Infill05 Core in the box is marked at the depth from surface versus the down-the-hole measurement in the numbers highlighted in the release.

Qualified Person

The technical information presented in this press release has been reviewed and approved for disclosure 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 and silver holdings in mine-friendly African jurisdictions. Currently the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat Mine. In Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper and silver exploration project.

Cautionary Notes

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.

This news release may contain forward-looking statements. These statements include statements regarding the Project, the mineralization of the Project, the Company’s exploration plans, the prospectivity of the Project 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) accept responsibility for the adequacy or accuracy of this release.

Contacts

For further information, contact:
Jed Richardson
+1 647 276 6002
jed.richardson@trigonmetals.com
Website: www.trigonmetals.com

Trigon Revises Mine Plan to Optimize Production Based on New Information from Kavango Pit Mining, Namibia

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 TORONTO, August 2, 2022 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) announces revisions to its mine plan based on new information from mining the Kavango Open Pit. As planned, initial mining has begun in the area of the Kavango Pit. Management has noted marked improvements on grade control and recoveries, and are pausing operations to focus the mine plan on this type of mineralization to reduce mine wide operating costs at its Kombat Mine in Namibia.

Trigon Metals has elected to pause operations at the Kombat Mine in Namibia to optimize its newly increased working capital by reconfiguring the mine plan to focus on higher grade and more consistent orebodies drilled in the Kavango pit and Kombat trend mineralization.  As detailed in the update release dated July 7 (See Press Release “Trigon Provides Operational Update”), stripping and mining has begun in the Kavango pit. As anticipated, the mineralization in this area is of higher and more consistent grade. Owing to this new information, a decision has been made to optimize the mine plan.  Management will now utilize an operational pause to focus the mine plan to exclusively operate from the Kavango pit and Kombat Trend mineralization, as compared to the original strategy which would have employed Kavango ore to supplement production from the central pit.

The revised mining plan should dramatically improve operating costs at the mine. The move to take advantage of the higher grade and more consistent Kavango and Kombat trend mineralization should take operating costs down to $2.60-$2.80/lb of copper, from the $3.30-$3.50/lb forecasts from the original mining plan.

Commenting, Jed Richardson, President and CEO, “With our recent increase in working capital via our streaming deal, we felt it not only prudent in the current lower copper price environment, but desirable over the longer term, to make the mine more profitable over its open pit phase. Although we need to delay full commercial production, we believe that our plans will increase operating efficiency and shareholder returns.”

During the production pause, drilling will continue on the Kombat Trend to build a new mine plan around the higher grade and more consistent mineralization discovered in this area. The central pit mineralization has proven more costly to mine, as the veinlet nature of the mineralization has made grade control difficult and costly to control. Mining in this area will be economic at higher copper prices and the company is also exploring ore sorting techniques to upgrade mill feed and reduce costs from the central pit. The pause will involve the retrenchment of a portion of the mine and mill staff for Trigon and the mine contractor.

The chart below shows the planned pits. The numbers represent the order in which pits  were to be mined under the original mine plan. Pits 5 and 6 had not yet been discovered  when the original mine plan was prepared.

Map of Mineralization Trends at Kombat Mine

Map of Mineralization at Kombat Mine: The chart shows the planned pits. The numbers represent the order in which pits were to be mined under the original mine plan. Pits 5 and 6 had not yet been discovered when the original mine plan was prepared. The colours highlight the known mineralization trends. Blue refers to the central trend. Yellow depicts the Kombat Trend. (Photo: Business Wire)

The colours highlight the known mineralization trends. Blue refers to the central trend. Yellow depicts the Kombat Trend.

As a first target, the central pit mineralization was attractive due of its proximity to the mill and what appeared to be lower strip ratio, however, the nature of the mineralization has proven to be different than the main Kombat Trend. This appears to be the situation in Pit 1 (“Central Pit”) and Pit 4. Pits 2 and 3 (“East 900”) are on the Kombat Trend and do not have the challenges that Pit 1 and 4 have presented. The difference in the trends is a new understanding of the mineralization brought to the fore by the recent work on Pit 5 (“Kavango pit”). The addition of Pits 5 and 6, will give this iteration of the open pit the same four year mine life as the previous plan but at more favourable operating costs. The plan to commence mining from the open pit and gradually transition to underground ore beginning in 2024 remains unchanged.

Qualified Person

The technical information presented in this press release has been reviewed and approved for disclosure 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 and silver holdings in mine-friendly African jurisdictions. Currently the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat mine. In Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper and silver exploration project.

 Cautionary Notes  

This news release may contain forward-looking statements. These statements include statements regarding Kombat Mine, the mine plan, the production pause, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s expectations for the Kombat project, 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.

 For further information, contact:

Jed Richardson
+1 647 276 6002
jed.richardson@trigonmetals.com

Website: www.trigonmetals.com

Trigon Announces US$27.5 Million Silver Streaming Term Sheet with Sprott Streaming

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TORONTO — Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has entered into a non-binding term sheet with Sprott Resource Streaming and Royalty Corp. (“Sprott Streaming”) and Sprott Mining Inc. (“Sprott Mining”, collectively the “Investors”) for a US$27.5 million silver and copper stream (the “Transaction”) for its Kombat Mine located in Grootfontein, Otjozondjupa Region of Namibia.

The Streaming Transaction

Pursuant to the Transaction, Trigon shall sell and deliver to Sprott 100% of silver produced from the Kombat Mine. The expansion of the Kombat Mine is projected to increase annual copper production and reduce forecasted operating costs. Proceeds will be used to complete ongoing works to dewater the mine, re-establish services, and continue exploration drill work, as well as to deliver a National Instrument 43-101 Compliant Feasibility Study for underground mining and for general corporate and working capital purposes.

The funds advanced as determined by Sprott Streaming include value for the open pit mine currently being operated from; the phase one underground development of the historic Kombat mine, and the phase two underground development of the Asis Far West mineralization. The phase two underground development takes advantage of a 750m, 2,000 tpd production shaft that is built and ready for operation. However, the Asis Far West area of mineralization has not been quantified into an NI43-101 Resource Estimate nor has an economic study been completed for this phase of the development. As part of the Transaction, Sprott Streaming will receive a 3.15% copper stream commencing when phase one underground mining begins that will terminate when mining phase two begins at Asis Far West.

The silver stream is for the life of mine, restricted to the Kombat Project and does not include the Silver Hill Project or any new project Trigon may acquire. At its election, the Company may buy back up to 50% of the Stream in a single payment by paying in cash to Sprott Streaming, the indicated multiple of the drawn advanced payment below on or before June 30 of the indicated year; after June 30, the buyback amount would refer to the following year. After June 30, 2027, the buyback right expires.

2024

1.37x

$18,837,500

2025

1.40x

$19,250,000

2026

1.43x

$19,662,500

2027

1.47x

$19,477,500

The US$27.5 million consists of US$25 million from Sprott Streaming, and US$2.5 million from Sprott Mining. The US$2.5 million (9.1% of the stream) from Sprott Mining shall set-off against the US$2.5 million loan from Sprott Mining announced on May 24, 2022 (please refer to the Company’s news release).

Subject to the approval of the TSX Venture Exchange (the “TSXV”), 2,500,000 warrants (the “Stream Warrants”) will be issued to Sprott Mining replacing the 2,500,000 warrants that were issued on May 24, 2022 to Sprott Mining (Please see the Company’s press release dated May 24, 2022). It is contemplated that each Stream Warrant will, if issued, have a strike price at a 35% premium to the 5-day VWAP share price for the 5 days prior to the execution of the definitive stream agreement (or such other exercise price as agreed to by the parties and as may be required by the TSXV) and will be exercisable for one common share of the Company for a term of three years (or such other term as required by the TSXV) and will otherwise have customary adjustment provisions. The Stream Warrants (and the underlying common shares, if the Stream Warrants are exercised within four months of their issuance), shall be subject to a four-month statutory hold period.

The Transaction is subject to certain customary closing conditions including the parties entering into definitive documentation, satisfactory completion of due diligence by Sprott Streaming and TSXV approval.

Jed Richardson, President and CEO of Trigon, said, “We are very pleased to be partnering again with Sprott Streaming and Sprott Mining. This deal is of singular importance because it accelerates and funds our feasibility study and development works at the Kombat Mine. It is a timely deal, as well, since our present operations have progressed to the point where we can now initiate expansion plans that will improve our strong position even more. The ability to repurchase 50% of the silver stream is an important feature of this agreement, and ultimately was the deciding factor in choosing to work with Sprott Streaming. We remain bullish on silver and further exploration success, and the repurchase rights give us an option to restore that exposure for our shareholders.”

Trigon Metals Inc.
Trigon is a publicly-traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. Currently, the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat mine. In Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper and silver exploration project.

Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the Transaction, the production of the Kombat Mine and Asis Far West, the economic viability of the Kombat Mine,, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s expectations for the Kombat project, 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) accept responsibility for the adequacy or accuracy of this release.

Contacts

For further information, contact:
Jed Richardson
+1 647 276 6002
jed.richardson@trigonmetals.com
Website: www.trigonmetals.com

Trigon Provides Operational Update at Kombat Mine in Namibia

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TORONTO – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) provides the following operational update and review of mining performance, ore processing and copper concentrate shipments from its Kombat Mine in Namibia.

The restart of the Kombat Mine has been a tremendous achievement for Trigon and its shareholders, as well as the Kombat community and country of Namibia. The mine employs 220 Namibians both directly and as contractors. An additional 80 women are employed on a part-time rotational basis as part of the Company’s community garden agricultural development project.

To date 1,103,312 tonnes of material have been mined including pre-stripping, 120,775 tonnes of ore have been mined at an average grade of 0.92% copper and 6.9 g/t silver.34,762 tonnes of ore grading 0.85% copper and 10.97 g/t silver have been fed into the mill and processed, producing 861.4 tonnes of concentrate grading 19.75% copper and 271.3 g/t silver. To date, 548 tonnes of concentrate have been shipped and revenue received.

Jed Richardson, President and CEO, commented, “The Kombat Mine is advancing towards achieving commercial production. During this process, a number of challenges arose that were addressed successfully. A new loan facility was arranged, the processing plant capacity was increased to 350 tonnes per day and a second open pit, which will soon be yielding higher grade sulphide ore, was developed.”

Working Capital Needs Addressed

The working capital issues that had previously hampered production were overcome with a refinancing and a US$2.5M advance on our planned silver stream from the Company’s largest shareholder, Eric Sprott. The mine is currently meeting its financial obligations from the sale of concentrates. Trigon is also in advanced discussions on the official sale of silver revenues in a streaming agreement that will bring in additional capital necessary to advance underground development. Kombat, through its 45-year operating history, has been an underground mine, and the planned return to underground mining will increase copper and silver grades and lower operating costs, boosting production and profitability.

Mill Flexibility

Through the start-up, the ore has been highly oxidized and the feed grade has been highly variable, resulting in the production of some low-quality concentrates. Through March and April, the processing plant team completed the final upgrade of the mill. The process included the installation of reagent dosing pumps to improve the accuracy of dosing as the reagent dosing had previously been erratic. Over this period, the plant also underwent a variety of upgrades with the aim of increasing plant capacity and reliability. Some of the key tasks completed include:

  • Changing the secondary crusher 2 from obsolete 2.4kV spares to 525V supply to ensure reliability.
  • Cleaning build-up from fines silos to increase available storage capacity
  • Improving ball mills feed chute distribution to ensure a stable flow
  • Changing the design of the bagging plant to ensure material of the correct consistency is bagged at the required rate to meet daily requirements

A key component of the upgrade was the installation of additional flotation cells, anticipated benefits of which include:

  • Increased flotation retention time.
  • Ability to float oxides and sulphides separately.
  • Ability to produce Cu and Pb concentrates.

At present, the processing plant has the capacity to produce in excess of 350 tonnes per week. Production is constrained by mine production.

Figure 1: Total Mined Tonnes vs. Ore Tonnes: To date 8.1 tonnes of waste have been moved for every tonne of ore. Over the life of mine the anticipated average is 1:6. The strip ratio was heavily impacted as stripping began on the Kavango pit in June. It is expected to level out as ore production begins in that area.
Figure 1: Total Mined Tonnes vs. Ore Tonnes: To date 8.1 tonnes of waste have been moved for every tonne of ore. Over the life of mine the anticipated average is 1:6. The strip ratio was heavily impacted as stripping began on the Kavango pit in June. It is expected to level out as ore production begins in that area.

 

Figure 2: Copper Production vs Head Grade: Head grades increased as sampling improved to control dilution. An error in sampling in May and additional stripping in June saw grades dip temporarily as new higher-grade ore is accessed from the Kavango pit.

Mining Throughput

High oxidation and variability of the ore in the open pit mining blocks has slowed mining output. In February, mining moved to mining smaller benches and requiring a higher volume of samples including blast hole sampling to get control of grade. This was effective in April, with head grades averaging 1.7% well above the 1.0% target, but it slowed down mining, falling below the mill capacity. The primary problem was the cycle time for confirmation sampling. In June, a mobile XRF sampling team was created and deployed to the mining pit giving the mining team instant feedback and allowing mining speeds to increase.

In addition, mining has begun in the Kavango pit a parallel structure to the Central pit where all of the ore has been sourced to date. The nature of the mineralization in the Kavango pit is more massive, larger higher grade mining blocks, that are expected to allow for higher mining output compared to stringy highly variable vein swarms mined in the Central pit. Currently, highly oxidized ore is being mined at Kavango as the team benches down to the sulphide ore. The mill should start receiving higher grade, high recovery ore from Kavango in the next two weeks.

Qualified Person

The technical information presented in this press release has been reviewed and approved for disclosure 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 and silver holdings in mine-friendly African jurisdictions. Currently, the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat Mine. In Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper and silver exploration project.

Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the commercial production, the proposed silver streaming agreement, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s expectations for the Kombat project 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.

Contacts

For further information, contact:
Jed Richardson
+1 647 276 6002
jed.richardson@trigonmetals.com
Website: www.trigonmetals.com

Trigon Metals Completes Credit Agreement with Sprott Mining

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Trigon Metals Inc. (TSX.V:TM) (“ Trigon ” or the “ Company ”) has entered into a credit agreement dated May 24, 2022 with Sprott Mining Inc. (“ Sprott ”) and the Company’s wholly owned subsidiary, Trigon (Morocco) Holding Corp. (“ Trigon Morocco ”), pursuant to which Sprott has lent to the Company US$2.5 million (the “ Sprott Loan ”).

The Sprott Loan has a term of 180 days (the “ Term ”) and will accrue interest at the rate of 12.0% per annum, payable in arrears. The Sprott Loan is secured by security interest over all present and after acquired property of Trigon and Trigon Morocco, with a first ranking charge against Trigon’s Moroccan assets including a guarantee from Trigon Morocco and a share pledge of its Trigon Morocco shares.

Pursuant to the Sprott Loan, upon closing of the Sprott Loan Trigon has issued 2,500,000 common share purchase warrants (the “ Initial Warrants ”) each exercisable for one common share of Trigon at a price of C$0.47 per common share for a period of one year from the date of their issuance, subject to customary adjustment provisions. In the event that Trigon and Sprott enter into an agreement for stream of silver deliveries equal to 8.25% of the silver produce from the Kombat Mine as contemplated in the credit agreement, the Initial Warrants will be cancelled and, subject to the approval of the TSX Venture Exchange (the “ TSXV ”), 2,500,000 warrants (the “ Stream Warrants ” and interchangeably with the Initial Warrants, the “ Warrants ”) will be issued. It is contemplated that each Stream Warrant will, if issued, have a strike price at a 35% premium to the 5-day VWAP share price for the 5 days prior to the execution of a stream agreement (or such other exercise price as agreed to by the parties and as may be required by the TSXV) and will be exercisable for one common share of the Company for a term of three years (or such other term as required by the TSXV) and will otherwise have customary adjustment provisions. The Warrants (and the underlying common shares, if the Warrants are exercised within four months of their issuance), shall be subject to a four month statutory hold period.

The proceeds of the Sprott Loan are to be used to fund the Company’s operations in Namibia and for working capital purposes. The Sprott Loan is considered to be a non-arm’s length transaction under the policies of the TSXV and a related party transaction under Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions (” MI 61-101 “) given that Mr. Eric Sprott, a principal of Sprott, through 2176423 Ontario Ltd., beneficially owns 31,048,332 common shares of Trigon (or approximately 18.3% of the outstanding Trigon common shares) and 7,524,166 warrants . The Loan has been determined to be exempt from the requirements to obtain a formal valuation or minority shareholder approval pursuant to section 5.5(a) and 5.7(a) of MI 61-101.

About Trigon

Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. Currently the company has operations in Namibia and Morocco. In Namibia, the Company holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the Company is focused on exploration and re-development of the previously producing Kombat Mine. In Morocco, the Company holds the Silver Hill project, a highly prospective copper and silver exploration project.

On behalf of the Board of Directors of Trigon Metals Inc.:

Jed Richardson, Director and Chief Executive Officer

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Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this news release constitute forward-looking information under applicable Canadian, United States and other applicable securities laws, rules and regulations, including, without limitation, statements with respect to the Sprott Loan, including the Warrants and the anticipated use of the proceeds of the Sprott Loan, the entering into any Stream Agreement and Trigon’s future business plans. These statements relate to future events or future performance. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Trigon’s current belief or assumptions as to the outcome and timing of such future events. There can be no assurance that such statements will prove to be accurate, as the Company’s actual results and future events could differ materially from those anticipated in these forward-looking statements as a result of the factors discussed in the “Risks and Uncertainties” section in the Company’s management discussion & analysis for the three and nine months ended December 31, 2021 and the financial year ended March 31, 2021, available under the Company’s profile at www.sedar.com . Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Trigon. The forward-looking information contained in this release is made as of the date hereof and Trigon undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Jed Richardson
+1 647 276 6002
jed.richardson@trigonmetals.com
Website: www.trigonmetals.com