Payment of Deferred Consideration

RNS Number : 2728F

Tri-Star Resources PLC

20 April 2011

 



20 April 2011

TRI-STAR RESOURCES PLC

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

Payment of Deferred Consideration

Tri-Star Resources (AIM: TSTR) announces that the conditions relating to the deferred consideration of £150,000 payable by the Company (the "Deferred Consideration") to the vendors of Üç Yildiz Antimon Madencilik İthalat Ve İhracat Sanayi ve Ticaret Anonim Şirketi ("Tri-Star"), in relation to the Company's acquisition of Tri-Star, as previously announced on 3 August 2010, have now been satisfied and, accordingly, the Deferred Consideration has now been paid. 

The Deferred Consideration was payable following the completion of specific milestones having been reached in relation to Tri-Star's Goynuk antimony mine (the "Goynuk Mine") in the Gediz district of Turkey, being: (i) the provision of sufficient evidence relating to the commercial viability of the Goynuk Mine; and (ii) the raising of funding sufficient to enable continued development of the Goynuk Mine and to cover contractual obligations which would arise from making that decision.

On 31 January 2011, the Company announced the assay results from its drilling programme, completed in December 2010, and that it now was satisfied that the Goynuk Mine contained sufficient antimony resources to make mining and processing operations commercially viable.  Accordingly, on 29 March 2011, the Company announced the placing of 270,800,000 new ordinary shares in the capital of the Company, raising £2.7 million, gross of expenses, to fund a further detailed assessment of the antimony deposit within the Goynuk Mine, to extend the drilling programme into new areas of the Company's mining licence, to commence the planning, design and approval process for the construction of a processing plant and for general working capital purposes.

As a result, milestones (i) and (ii) above have been satisfied and, accordingly, the Deferred Consideration has been paid.

Enquiries:

Tri-Star Resources Plc                                         Michael Hirschfield	Tel: [phone]
Strand Hanson Limited (Nomad) James Harris / Paul Cocker / Liam Buswell	Tel: [phone]

 

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