Safi Silver Payment Boosts Capital
Safi Silver Receives Second Quarterly $3 Million Payment from Horizon for Kombat Mine
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Safi Silver Corp. (TSX-V: SF) has collected its second quarterly payment of US $3 million from Horizon Corporation Limited, the buyer of its stake in the Kombat Mine in Namibia, according to Financial Post. The payment arrived on schedule and on time with the deal's terms.
The funds give Safi a steady, non-dilutive cash stream — meaning the company raises money without issuing new shares and diluting existing investors. Safi also keeps long-term upside through a retained royalty and contingent payments tied to the mine's future performance, Montreal Gazette reported.
How the Kombat Mine Deal Funds Safi's Future
Safi sold its interest in the Kombat Mine to Horizon Corporation Limited. In return, Safi receives quarterly payments of US $3 million. Two payments have now been made, totaling US $6 million so far. The deal structure lets Safi collect predictable cash without giving up all future value from the mine, according to Cold Lake Sun.
Safi kept a royalty on the mine and is also owed contingent consideration — extra payments tied to how well the mine performs going forward. This means if the Kombat Mine does well, Safi still benefits even though it no longer owns it outright, Paris Star noted.
Safi Pushes Ahead at Morocco's Addana Silver Project
While Horizon payments come in, Safi is actively exploring at its flagship Addana Silver Project in Morocco. The company calls Addana its main focus going forward. Exploration work continues to advance at the site, Fort Saskatchewan Record reported.
Safi said it will share updates as new Horizon payments arrive and as it hits exploration milestones at Addana. The dual strategy — collecting mine sale payments while drilling a new project — gives the company two separate paths to build value, according to Ontario Farmer.
Non-Dilutive Cash Keeps Shareholders From Getting Squeezed
For small mining companies, raising money often means issuing new shares. That dilutes existing investors by spreading ownership across more shares. The Horizon payments avoid this problem entirely. Safi gets US $3 million every quarter without shrinking the value of existing shares, Mitchell Advocate reported.
This matters especially for junior miners like Safi, which trade on the TSX Venture Exchange. Access to steady, predictable funding is rare at this stage. The quarterly payment structure gives Safi financial breathing room as it advances the Addana project, according to Clinton News Record.
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