Issue of Convertible Bonds

RNS Number : 4351H

Tri-Star Resources PLC

20 June 2013

 



20 June 2013

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

Issue of Convertible Bonds

The Company is pleased to announce that it has completed a private placing of £4.0 million secured convertible bonds due June 2018 ("Convertible Bonds") with Odey European Inc ("Odey").  The Convertible Bonds will be drawn down in two tranches, with the first £1.33 million being drawn down immediately and the balance to be drawn down by 31 January 2014.  The Convertible Bonds carry a non-cash coupon of 15% per annum which compounds half yearly and are secured by way of a guarantee and debenture granted by Tri-Star Antimony Canada, Inc., the Company's wholly owned subsidiary which holds all of the Company's Canadian assets, which, subject to completion of the proposed acquisition of Portage Minerals Inc. ("Portage"), will also include the assets of Portage.

The Convertible Bonds will be issued and redeemable at 100% of their principal amount plus accrued interest and, unless previously redeemed, converted or cancelled, will mature on the fifth anniversary of the issue of the Convertible Bonds in June 2018.

The Convertible Bonds are convertible at 100% of their principal amount plus accrued interest at the holder's option into ordinary shares of 0.005 pence each in the capital of the Company at a conversion price which is fixed at the time of conversion at a 10% discount to the lower of:

·        the latest equity funding round completed prior to the issue of the conversion notice; and

·        any equity funding round completed within 10 business days following the issue of the conversion notice.

The Convertible Bonds will not be listed and are transferable.

The Convertible Bonds issue will be used to complete the proposed acquisition of Portage and meet other working capital requirements, and in conjunction with other funding sources, to finance the Company's share of its roaster project in the Gulf.

Commenting on the subscription, Emin Eyi, Managing Director said: "This funding provides Tri-Star Resources with significant additional financial stability and strength and will assist us in further advancing the development of our antimony processing and mining projects."

Enquiries:

Tri-Star Resources Plc Emin Eyi, Managing Director Brian Spratley, Technical Director	Tel: [phone] Tel: [phone]
Strand Hanson Limited (Nomad) James Harris / Richard Tulloch	Tel: [phone]
SP Angel Corporate Finance LLP (Joint Broker) Robert Wooldridge / Katy Birkin	Tel: [phone]
Keith, Bayley, Rogers & Co Limited (Joint Broker) Simon Frost / Brinsley Holman	Tel: [phone]

About Tri-Star Resources

Tri-Star Resources is a focused antimony company whose management has many years experience in trading and mining this critical mineral.  The Company objective is to become the leading integrated antimony metal and products manufacturer to western economy consumers utilizing a new technical and environmentally advanced 20,000 tonnes per annum name plate capacity metal and tri-oxide production facility in the Gulf, with raw material supplied from its upstream resource projects in Turkey and Canada and from third party producers.

Further information is available at www.tri-starresources.com.

 

END

 

 

IOELLFVRRIIALIV