Oman Antimony Roaster Project Update

RNS Number : 1964Z

Tri-Star Resources PLC

16 September 2015

 

16 September 2015

Tri-Star Resources plc

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

Oman Antimony Roaster Project Update

Achievement of Financial Close

Further to the Company's announcement on 24 August 2015 the Board of Tri-Star (AIM: TSTR) is delighted to announce that following the satisfaction, completion or waiver of all outstanding conditions to the Strategic & Precious Metals Processing LLC ("SPMP") shareholders' agreement, financial close has been achieved.

Equity funding by the partners has taken place and Tri-Star has confirmed its 40% equity interest in SPMP.  SPMP will now proceed to develop a 20,000 tonne per annum antimony processing facility in the Sultanate of Oman (the "OAR").

Key Points:

·    Landmark milestone achieved and $70 million funding package now in place.

·    Commissioning of plant expected during 2016 and commercial production by 2017.

·    Board confident that SPMP will also proceed to build a second processing facility for refractory gold ores.

Tri-Star's equity funding commitment of $6 million has been met through the application of the first two tranches, totalling $4 million, from the sale of intellectual property rights to SPMP under the Deed of Assignment dated 5 June 2015, together with a further $2 million from Tri-Star's own cash resources.  An additional $2 million tranche remains payable under the Deed of Assignment to Tri-Star by SPMP on the commissioning of an antimony roasting pilot plant, part of the overall OAR, and will be used by Tri-Star for general corporate purposes.

Emin Eyi, Managing Director, commented:  

"I am delighted to announce that we have delivered on our commitment to the OAR and with committed funds of $70 million now in place, plant construction can commence.  

"This is a transformational transaction for Tri-Star, following many years of development, and the project has substantial technical and economic potential.  It provides Tri-Star with direct exposure to an upstream conversion business with the prospects of healthy margins and cash flow once in production.  We are confident that SPMP will also proceed to build a second processing facility for refractory gold ores, hence becoming a leading converter of difficult concentrates at a time when the industry requires more environmentally friendly and economical routes to metal.

"We look forward to working with our joint venture partners to bring this exciting project into production to become one of the first sizeable Western World antimony roasters."

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 / Jeff Keating	Tel: [phone]
Yellow Jersey PR Limited (Media Relations)	Tel: [phone]
Alistair de Kare-Silver / Dominic Barretto

 

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