TSTR Tri-star Resources Plc

Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resources

16 October 2019

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

Antimony Concentration Reaches 99.5% & Gold Reaches 5%

& Issue of Equity

Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is pleased to announce that the purity of antimony and gold being produced at the antimony-gold processing facility in the Port of Sohar Free Zone located in the Sultanate of Oman (“the Project”), has increased to 99.54% and 5% respectively.  The Project is owned by Strategic & Precious Metals Processing LLC (“SPMP”) in which the Company holds a 40% interest.

Overview

• 99.5% purity of Antimony metal reached, sufficient for the acid battery market
• Gold concentration increased to 5%, and producing sufficient quantities for sale with volumes also increasing

Adrian Collins, Chairman of Tri-Star commented: “Reaching purities of 99.54% and 5% respectively for antimony and gold is a major step in the development of this exciting project.  Notably, at this concentration level, which is edging closer to our near-term target 99.65%, antimony can be sold into the acid battery market.  Additionally, SPMP is now producing saleable quantities of gold dore, the purity of which also continues to improve.”

Details

The SPMP Project is the largest antimony roaster outside of China and the world’s first ‘Clean Plant’, designed to EU environmental standards.  It has a targeted capacity to produce in excess of 50,000 oz. of gold and 20,000 tonnes in combined antimony metal and antimony trioxide (“ATO”) per annum. 

SPMP remains focused on ramping up production to reach its targets.  Accordingly, it has produced antimony metal at a grade of 99.54%, which is the minimum grade required by some companies in the acid battery market.  It is now concentrating on reducing further the impurity levels in its output with the near-term target being 99.65%, which is the industry standard.    

Additionally, SPMP is producing gold dore at over 5% concentration and in sufficient quantities for sale.  SPMP expects the concentration to increase further as production ramps up over the next few months.

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). 

Issue of Equity

Tri-Star has today allotted 60,273 ordinary shares of 5p each in the capital of the Company ("Ordinary Shares") at an average price of 41.48 pence per Ordinary Share in consideration for services provided.

The Company has applied for admission of the 60,273 new Ordinary Shares (the "New Ordinary Shares") to trading on AIM. Dealings are expected to become effective on or around 21 October 2019 ("Admission"). The New Ordinary Shares represent approximately 0.064% of the total Ordinary Shares that are expected to be in issue. 

Following Admission, the Company will have 94,186,118 Ordinary Shares in issue. The Company has no shares in treasury, therefore the figure of 94,186,118 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

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:

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.