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
24 January 2019
Tri-Star Resources
plc ("Tri-Star" or the "Company")
Update on First Metal, SPMP Funding and Disposal of Göynük Project
in Turkey
Tri-Star (AIM: TSTR), the mining and minerals processing
company, is pleased to announce that management at Strategic &
Precious Metals Processing LLC ("SPMP") in Oman, which Tri-Star has a 40% shareholding,
expects the initial production of pure antimony metal to take place
in the next week.
The event is a key milestone for SPMP as it proves all aspects
of this technologically advanced facility are functional and the
country of Oman can boast a
world-class, strategic industrial asset.
The production of first metal is also a key requirement in
obtaining a long-term finance package for the plant and the board
of Tri-Star understands that SPMP is well advanced in these
discussions.
As was recently announced, SPMP has requested an additional
US$10.5m from its shareholders. The
Company is confident that an equity placing will not be required in
order to meet its 40% share of the funding requirement.
In addition, the disposal of the Company’s interest in the
Göynük mine in Turkey has
completed for a total cash consideration of US$500,000, with the first tranche of
US$200,000 already received by
Tri-Star.
Highlights of Göynük Transaction:
- The Göynük mine 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 Sale Purchase Agreement (“SPA”) with a
local Turkish entity which has experience in mining (the
“Purchaser”);
- Under the terms of the SPA the Purchaser will pay US$500,000 cash to Tri-Star in three tranches,
the first was paid on the signing of the SPA on 21 January 2019, the second payment falls due
upon share transfer, and the third payment of US$100,000 falls due on the first sale of
material from the mine;
- Following the closing of the transaction, the Purchaser plans
to bring the mine back into production before the end of 2019;
- Tri-Star is facilitating an offtake contract between the
Purchaser and SPMP.
Karen O’Mahony, Acting Chief Executive
Officer of Tri-Star, commented:
“We are pleased that first metal is
now imminent.
The SPMP Plant is a key strategic
asset for Oman with very strong
backing from the country’s Government – who have shown exceptional
support for the Project. The success of the Project demonstrates
the potential that can be realised through Foreign Direct
Investment in Oman by
international partners, particularly the UK, with whom the country
enjoys a special relationship.
In Turkey, the new owners of the Göynük Project
are extremely keen to advance its development, which will help
secure feedstock for the Company’s flagship SPMP Project. We look
forward to continuing to work with the purchaser post completion so
that we can establish an offtake agreement for SPMP for the Göynük
production.”
ENDS
Enquiries:
Tri-Star Resources plc
Karen O’Mahony, Acting CEO/
CFO
Tel: +44 (0)20 7653 6291
Tavistock Communications Ltd
Charles Vivian/ Gareth
Tredway
Tel +44 (0)20 7920 3150
SP Angel Corporate Finance (Nominated Adviser)
Robert Wooldridge/ Jeff
Keating
Tel: +44 (0)20 3470 0470
FinnCap Ltd (Broker)
Christopher Raggett/Scott Morrison/Camille
Gochez
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 which is held for its potential
contribution of feedstock to the SPMP Project.