Tri-Star Resources PLC / AIM: TSTR /
Sector: Natural Resources
19 August 2019
Tri-Star Resources
plc ("Tri-Star" or the "Company")
First Commercial Grade
Dore Produced at Antimony-Gold Processing Facility
and
Purity of Antimony
Metal Improves
Tri-Star Resources plc (AIM: TSTR), the minerals processing
company, is pleased to announce that production of commercial
grade dore has commenced at the antimony-gold processing
facility in the Port of Sohar Free
Zone located in the Sultanate of Oman (“the Project”), which is owned by
Strategic & Precious Metals Processing LLC (“SPMP”) in which
the Company holds a 40% interest.
Overview:
- SPMP produced first ingot with a gold concentration in excess
of 2%, the minimum commercial grade
- Focused on ramping up production and building volumes for
sale
- Purity of antimony metal increased to 99.11% up from 98% in
July 2019
- SPMP is confident of increasing the purity of antimony metal to
the commercial grade of 99.65% plus
- Advancing negotiations in respect of converting SPMP’s existing
mezzanine loans into an interest free shareholder loan and/or
equity
Adrian Collins, Chairman of
Tri-Star commented: “Production of first commercial grade
dore is a significant milestone as we look to advance the
development of this exciting gold and antimony project and build a
leading global position in the market. Whilst there are still
challenges to overcome, we have reached a tipping point that will,
I believe, result in accelerated activity over the next few months;
we look forward to updating shareholders on progress.”
Details
SPMP has produced first ingot with a gold concentration in
excess of 2%, the minimum commercial grade. The focus is now on
ramping up production and building volumes for sale.
Importantly, SPMP is now producing antimony metal at a purity
of 99.11% up from 98% as announced on 22
July 2019. Whilst this is still below the commercial
grade of 99.65%, the SPMP team is confident that this will be
achieved as production increases and the normal fine-tuning
adjustments are made, although there remain a number of operational
challenges to overcome.
Additionally, negotiations in respect of converting SPMP’s
existing mezzanine loans into an interest free shareholder loan
and/or equity are ongoing and it is expected that final terms will
be agreed and the conversion to happen prior to the conclusion of
the current round of SPMP debt funding.
Tri-Star has a 40% shareholding in SPMP with the other joint
venture partners being The Oman Investment Fund (40% equity holder)
and DNR Industries Limited, part of Dutco Group in Dubai (20% equity holder).
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)
Robert Wooldridge / Jeff Keating |
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. Tri-Star also has antimony exploration licenses in
Canada which are held for their
potential contribution of feedstock to the SPMP Project.