Trigon Metals Announces Private Placement Financing and Appointment of Mark Eaton as Chairman
TORONTO, ONTARIO--(Marketwired - July 19, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Trigon Metals Inc. (TSX VENTURE:TM) ("Trigon" or the "Company") intends to complete a non-brokered private placement financing of up to 3,333,333 units (the "Units") at a price of $0.30 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). Each Unit will be comprised of one common share of Trigon (a "Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Share at a price of $0.40 for a period of 36 months following the closing date of the Offering.
Closing of the Offering is expected to occur on or about August 2, 2017 and remains subject to a number of conditions, including receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The Company intends to use the net proceeds from the Offering for exploration and development of the Kombat Mine, and for working capital and general corporate purposes. Trigon is also evaluating opportunities to partner with a strategic investor and copper concentrate offtaker, as a potential funding source for the required operational restart capital.
Corporate Update
The Company announces the resignation of Brett Richards from the board of directors of the Company and the appointment of Mark Eaton as a director and Chairman of the board, effective immediately. In addition, Paul Bozoki has resigned as Chief Financial Officer of the Company and will be replaced by Stephen Woodhead with effect from August 1, 2017. Mr. Eaton will participate in the Offering.
Stephan Theron, President & CEO of Trigon, commented: "We are extremely pleased to welcome Mr. Eaton to the board and Mr. Woodhead to the management team. Mark brings extensive experience in the mining sector and capital markets to the team at a critical juncture as we are aiming to restart the Kombat mine in the near future."
Mr. Eaton is a graduate from Hull University, England and is an experienced investment professional with over 20 years of experience in equity capital markets specializing in the resource sector. He has held the position of Managing Director of Global Mining Sales, a division of CIBC World Markets and Manager of US Equity Sales for CIBC World Markets. Mr. Eaton is also a former Partner and Director of Loewen Ondaatje McCutcheon Ltd., a Toronto-based investment dealer. In addition to his experience in institutional mine finance and investment banking, Mr. Eaton has served in management and on the Boards of several public mining companies. Mr. Eaton is the current Executive Chairman and the former Chief Executive Officer of Belo Sun Mining Corp.
Mr. Woodhead is a graduate of the University of Cape Town and a member of the South African Institute of Chartered Accountants. Mr. Woodhead has over 25 years of experience having worked for the South African Department of Finance and Trans Hex Group, a South African diamond producer, before relocating to Canada in 1997 as Chief Financial Officer of Trans Hex International. From 2003 until it was acquired by Yamana Gold in 2006, Mr. Woodhead was the Chief Financial Officer of Desert Sun Mining, developer of the Jacobina gold mine in Brazil, and in 2011 and 2012 was Chief Financial officer of Crocodile Gold Corp. Mr. Woodhead has also acted as Chief Financial Officer of Admiral Bay Resources (oil and gas), Beartooth Platinum (platinum group metals), Longford (oil and gas), Aberdeen International (royalty), Sanatana Diamonds (diamonds) and Homeland Energy (coal); as Vice President, Finance of Glass Earth (gold) and Luiri Gold (gold); and has served as a director of Apogee Minerals (silver) and Vaaldiam Mining (diamonds).
The board of directors would like to thank Mr. Richards and Mr. Bozoki for their contributions to Trigon and welcomes Mr. Eaton and Mr. Woodhead to the Company.
Trigon has granted a total of 675,000 stock options to certain officers, directors and consultants of the Company pursuant to the Company's stock option plan. The stock options vest immediately and may be exercised at a price of $0.385 per option for a period of five years from the date of grant. This grant of options is subject to the approval of the TSX Venture Exchange.
Trigon is a publicly traded Canadian exploration and development company with its core operations focused on copper resources in Namibia, one of the world's most prospective copper regions, where it has substantial assets in place with significant upside. The Company continues to hold an 80% interest in five mining licences in the Otavi Mountain lands, an area of Namibia particularly known 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
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 Offering, the expected use of proceeds of the Offering, the impact of changes to the Company's board of directors and management team, the grant of stock options, the Company's ability to partner with third parties 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Contact
Spyros Karellas
Investor Relations
+1 (416) 433-5696
spyros@pinnaclecapitalmarkets.ca
www.trigonmetals.com