Trigon Metals Closes Oversubscribed Private Placement Financing

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TORONTO, Jan. 08, 2020 (GLOBE NEWSWIRE) -- Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) has closed, on an oversubscribed basis, its previously announced non-brokered private placement financing (the “Offering”).  The Company issued 30,000,000 units (the “Units”) at a price of $0.12 per Unit for gross proceeds of $3,600,000.  Each Unit is comprised of one common share of Trigon (a “Share”) and one common share purchase warrant (a “Warrant”).  Each Warrant entitles the holder thereof to acquire one Share at a price of $0.20 for a period of 36 months following the closing date of the Offering.  The Offering was oversubscribed by $600,000.

The Company intends to use the net proceeds from the Offering for reviewing potential strategic acquisition opportunities and for working capital and general corporate purposes.

Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 16,666,666 Units under the Private Placement for a total consideration of $2,000,000. Prior to the Private Placement, Mr. Sprott owned 1,333,333 Shares. As a result of the Private Placement, Mr. Sprott beneficially owns or controls 17,999,999 Shares and 16,666,666 Warrants representing 19.99% of the issued and outstanding common shares of the Company on a non-diluted basis and 32.36% on a partially diluted basis.

The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott may acquire additional securities of Trigon including on the open market or through private acquisitions or he may sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors that Mr. Sprott considers relevant from time to time.

A copy of 2176423 Ontario Ltd.'s related early warning report will appear on the Company's profile on SEDAR (www.sedar.com) and may also be obtained by calling Mr. Sprott's office at [phone] (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Jed Richardson, President and CEO of Trigon commented, "I would like to thank our investors for their ongoing support of the Company as we embark on a New Year. In 2020, we look forward to advancing our new copper initiative in mine-friendly Morocco, while also exploring its apparent silver potential. Likewise, we intend to continue developing our strategic plan for copper in Namibia. We anticipate these funds will play a key role in creating value for our shareholders."