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
14 January 2019
Tri-Star Resources
plc ("Tri-Star" or the "Company")
Operational
Update
Tri-Star (AIM: TSTR), the mining and minerals processing
company, is pleased to announce an update from Strategic &
Precious Metals Processing LLC’s ("SPMP’s") antimony-gold
processing facility in Oman, in
which the Company has a 40%-shareholding, and on progress with the
disposal of the Company’s interest in the Göynük Project in
Turkey.
SPMP Update:
The commissioning process continues at the SPMP antimony-gold
processing facility in Oman:
- Critically, the process chemistry is now proven and crude
antimony trioxide (“ATO”) has been produced and stockpiled in
readiness for the commissioning of the furnace section of the
plant.
- While work to date demonstrates that the process is
fundamentally working well, certain engineering issues having been
encountered for which remediation requirements are understood and
in process.
- The plant has produced a quantity of intermediate product and
SPMP looks forward to providing a further update on first metal
once the furnace commissioning is complete. As a result of the
delay in first metal and full commissioning of the plant, SPMP will
need further funding for additional capex and working capital.
- Such funding may be available from local Omani or international
banks, from other funding providers or from SPMP’s shareholders.
SPMP are in discussions with a number of local banks who are
supportive.
- As an interim measure SPMP has requested an additional
US$10.5m from its shareholders and
discussions are ongoing between SPMP and its shareholders as to how
this finance may best be provided.
Göynük Project Update:
- The Göynük Project consists of the exploration and mining
rights for a historical artisanal mine in a known antimony belt in
the Murat Dagi mountains of western Turkey, of which the Company currently owns
99.93%;
- Tri-Star has signed a ‘Letter of Intent’ with a local Turkish
entity (the “Purchaser”), as part of the sale process of the Göynük
Project; we expect the sale to close in Q1 this year;
- The Purchaser plans to bring the mine back into production
before the end of 2019 and has indicated a desire to enter into an
offtake agreement with SPMP which Tri-Star will facilitate.
Karen O’Mahony, Acting Chief Executive
Officer of Tri-Star, commented:
“The SPMP management team is
constantly improving the capability of this unique metal processing
plant. Some engineering glitches have arisen during commissioning.
However, this is not unusual. SPMP feels that the capability of the
plant to produce antimony and other metals is now confirmed and an
update on first metal is expected once the remediation work and
furnace commissioning is complete.
The delay means SPMP will need
additional capital to finance its operations through to positive
cashflow and management are engaged with a number of local banks
who continue to be supportive. Whilst SPMP has requested an
additional $10.5m from its
shareholders, we are discussing the best approach to this funding,
including speaking to local lenders and other funding
providers.
The Tri-Star board has made a
strategic decision to sell its Turkish operations to a partner who
can bring the mine into production. We look forward to introducing
SPMP to the Purchaser with a potential antimony feedstock supply
agreement in mind.”
ENDS
Enquiries:
Tri-Star Resources plc
Karen O’Mahony, Acting CEO/
CFO
Tel: +44 (0)20 7653 6291
Tavistock Communications Ltd
Tel: +44 (0) 20 7920 3150
Charles
Vivian
Mobile: +44 (0) 7977297903
Gareth
Tredway
Mobile: +44 (0) 7785974264
SP Angel Corporate Finance (Nominated Adviser)
Robert Wooldridge/Jeff
Keating
Tel: +44 (0)20 3470 0470
FinnCap Ltd (Broker)
Christopher Raggett/ Scott
Mathieson
Tel: +44 (0)20 7220 0500
Notes to the Editor
Tri-Star’s principal activities are in an antimony and gold
production facility (the “SPMP Project” or the “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.
Tri-Star also has antimony exploration licenses in Canada and Turkey and a mining permit in Turkey which are held for their potential
contribution of feedstock to the SPMP Project.