Tri-Star Resources PLC / AIM: TSTR /
Sector: Natural Resource
13 May 2020
Tri-Star Resources plc ("Tri-Star"
or the "Company")
Sale of first Antimony and Update
Tri-Star Resources plc (AIM: TSTR), the minerals processing
company, announces an update on its investment in Strategic
& Precious Metals Processing LLC (“SPMP”), an antimony and gold
production facility in the Sultanate of Oman in which the Company holds a 40% equity
interest. The other joint venture partners are The Oman Investment
Fund Holding Company LLC (“OIF”) (40% equity holder) and DNR
Industries Limited, part of Dutco Group in Dubai (20% equity holder).
First sale of Antimony
SPMP has sold and on 6 May SPMP shipped its first consignment of
antimony comprising 60 tonnes of antimony metal ingots. This is an
important step in the ramp-up of operations at SPMP. The
management of SPMP expects the plant to be operating at 50% of
capacity by the end of Q2 2020 and 100% by the end of the year.
Update on COVID-19
Following the diagnosis of an employee operating in the roaster
section of the plant having tested positive for COVID-19, SPMP
executed its COVID-19 mitigation protocol successfully in
accordance with Ministry of Health’s published guidelines. In
accordance with these guidelines, a number of employees have been
placed in isolation for a period of 14 days, which will have a
consequent short-term impact upon production. SPMP’s
management is developing a plan to resume production on the roaster
on a limited basis with the personnel allowed to remain on
site.
Financing
As announced on 8 April 2020, SPMP is
continuing its discussions with local banks to provide a
USD60m term loan facility who
expressed an interest in providing a working capital facility of up
to USD45m (out of a total required of
USD 60m, as announced on 3 January 2020) subject to meeting certain
criteria. It should be noted, however, that until such
facilities are agreed, the future financing of SPMP remains
uncertain.
Arbitration
As also announced on 8 April 2020,
OIF has issued a Request for Arbitration, commencing an arbitration
proceeding with Tri-Star, DNR and SPMP as Respondents. A
Sole Arbitrator has now been appointed but has yet to make contact
with the parties.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No. 596/2014 until the release of this
announcement.
**ENDS**
For further information, please visit www.tri-starresources.com
or contact:
Tri-Star Resources
plc
David Facey, CEO/ CFO |
c/o SBP
Tel: +44 (0)20 7236 1177 |
St Brides Partners
(Financial PR)
Isabel de Salis / Beth Melluish |
Tel: +44 (0)20 7236 1177 |
SP Angel Corporate Finance
(Nominated Adviser) Jeff Keating/ Caroline Rowe |
Tel: +44 (0)20 3470 0470 |
finnCap Ltd
(Broker)
Scott Mathieson / Camille Gochez |
Tel: +44 (0)20 7220 0500 |
Notes to Editors:
Tri-Star’s principal interest is in an antimony and gold
production facility (the “SPMP Project”). The SPMP Project is based
in Sohar, Sultanate of Oman, and
is being developed by Strategic & Precious Metals Processing
LLC (“SPMP”), an Omani company in which Tri-Star has a 40% equity
interest.