Antimony Roaster Engineering Report

RNS Number : 7198J

Tri-Star Resources PLC

09 April 2015

 



Tri-Star Resources plc ("Tri-Star" or the "Company")

Antimony Roaster Engineering Report

9 April 2015

Tri-Star, the integrated antimony development company, is pleased to provide an update on the Oman Antimony Roaster ("OAR") project.

Strategic & Precious Metals Processing LLC ("SPMP") a company registered in the Sultanate of Oman and in which Tri-Star owns 40%, has taken formal delivery of a third party engineering report ("Report") commissioned by SPMP in respect of the OAR.  The Report discusses the viability of the overall OAR process as developed by Tri-Star and provides a capital expenditure estimate for the construction of the facility.

The Report estimates an overall capital cost of US$62.1 million for the facility, which is in line with previous estimates.  The Report does not cover the cost of a pilot plant on site, which it is expected will become operational in advance of the main plant.

The OAR facility is located in the Free Zone of Port of Sohar, a nodal multi functional port that is co-owned and operated by the Port Authority of Rotterdam and the Government of Oman.  The facility is sited on a 22 hectare site benefitting from access to the port, nearby utilities and access to low cost fuel sources, such as liquefied petroleum gas (LPG), from the port side oil refinery.   

The antimony roasting facility is designed to modern environmental standards and will treat approximately 40,000 tonnes of antimony concentrates as well as direct shipping ores to produce approximately 20,000 tonnes per annum of antimony metal and antimony trioxide. The plant recently received its Provisional Environmental Permit as described in the announcement issued by Tri-Star on 20 February2015.

The US$70m funding package for the facility includes US$20m of equity from the SPMP shareholders, a US$10m mezzanine loan facility, in addition SPMP is negotiating a banking facility of up to US$40 million, and has signed a Facility Offer Letter with a local bank, as described in the recent Tri-Star announcement dated 16 February 2015.

Managing Director, Emin Eyi, commented on the Report:

"This is another important milestone which demonstrates the viability of the roaster project. Our focus in now to ensure that construction can commence before the end of the year".

Enquiries:

Tri-Star Resources Plc Emin Eyi, Managing Director Guy Eastaugh, Chief Financial Officer	Tel: [phone]
SP Angel Corporate Finance (Nomad and Broker) Robert Wooldridge / Katy Birkin	Tel: [phone]

This news release may contain "forward-looking information", as defined under applicable Canadian securities laws. Forward-looking information typically contains statements that relate to future, not past, events and often contains words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. There can be no assurance that the forward-looking information contained in this release will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.

All statements, other than statements of historical fact, included in this release including, without limitation, the viability of chemical processes, the financial assumptions, bases and outputs mentioned, constitute forward- looking information. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the ability to deliver any of the outcomes referred to, the availability of financing and general economic and market conditions. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks associated with changes in laws, the ability to raise finance on acceptable terms for any of the projects or facilities mentioned, the volatility of commodity and raw material prices, currency exchange rates and interest rates, global economic conditions and the additional risks identified in the Company's Annual Report and Financial Statements for the year ended 31 December 2013 or other reports and filings with applicable securities regulators. Forward-looking information in this release is based on the Directors' beliefs, estimates and opinions on the date of this release and the Company does not undertake to update publicly or revise the forward-looking information contained in this release, except as required by applicable securities laws.

Any financial outlook or future-oriented financial information in this release, as defined by applicable Canadian securities laws, has been approved by the Directors as of the date of this release. Such financial outlook or future oriented financial information is provided for the purpose of providing information about the Company's current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this release.

 

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