TIDMTSTR
RNS Number : 7786E
Tri-Star Resources PLC
14 April 2014
14 April 2014
Tri-Star Resources PLC ("Tri-Star Resources" or "the
Company")
Shareholders Agreement signed with respect to Strategic &
Precious Metals Processing LLC ("SPMP")
Tri-Star Resources (AIM: TSTR), the integrated antimony
development company, is pleased to announce that it has entered
into a shareholders agreement with Oman Investment Fund ("OIF") and
Castell Investments Ltd ("Castell") in respect of SPMP, a joint
venture company which is intended will construct and operate a
20,000 tonne per annum nameplate capacity antimony metal and
tri-oxide manufacturing roasting facility in Oman (the "Roaster
Project").
SPMP will be incorporated in the Sohar Free Trade Zone ("Sohar
FTZ") in Oman. The Sohar FTZ is being developed into a major
regional and international hub for the downstream processing of
metals and minerals. It is served with excellent logistical nodes,
including its close proximity to the Port of Sohar, and low energy
costs. The fiscal regime for Sohar FTZ companies is also attractive
with a zero corporation tax rate provided that certain Oman
national employment levels are achieved. SPMP is expected to enter
into a land lease over a 22 hectare plot in Sohar FTZ.
The Roaster Project remains subject to certain conditions
including securing banking finance and obtaining the necessary
permits to operate the Roaster including environmental
approvals.
Under the Shareholders Agreement, the shareholders will own and
control SPMP in the ratio 40% by Tri-Star Resources, 40% by OIF and
20% by Castell (the "Joint Venture Parties"). SPMP's Board of
directors will comprise seven members, three of which will be
appointed by OIF, two by Tri-Star, one by Castell and one jointly
by Tri-Star and Castell. Key strategic and operational decisions of
the joint venture will require the unanimous approval of all Joint
Venture Parties.
The funding structure is expected to include at least US$30
million of project finance to be raised from local and regional
banks. A number of banks in Oman have been contacted by the Joint
Venture Parties and indicative loan financing terms have been
received and are under consideration.
The balance of the capital cost of US$30 million to US$40
million is expected to include a mezzanine loan of US$10 million
from OIF with the balance to be provided as equity by the Joint
Venture Parties over the construction phase of the project.
Tri-Star Resources has already invested a considerable amount in
developing the proprietary intellectual property and engineering
design work for the environmentally compliant roasting of
refractory ores to be used in the Roaster and also in other
potential mineral processing operations (as discussed further
below). As part of the overall commercial arrangements, SPMP will
own this intellectual property via investment in a separate company
set up by Tri-Star Resources to own the rights to it.
The Joint Venture Parties are progressing towards completing the
final approvals and financing package so that site preparation work
and construction can commence during 2014. Construction is expected
to take up to 18 months, including commissioning. Operations are
expected to commence in 2016.
The Roaster Project is the first phase of the Company's proposed
metal processing activities. The Joint Venture Parties anticipate
the extension of their partnership to a second phase processing
facility which envisages using Tri-Star's clean roasting technology
to treat refractory gold sulfide concentrates. This second stage
project is also expected to be located in the Sultanate of Oman. A
technical report on the feasibility of the roasting technology
developed by Tri-Star to treat refractory gold concentrates has
been received by the Company as announced on 20 December 2013.
Greenstone Equity Partners, a Dubai based investment and
advisory firm, has advised Tri-Star Resources on the establishment
of the joint venture and is advising the Joint Venture Parties on
the debt financing for SPMP.
Commenting on the signing of the Shareholders Agreement, Emin
Eyi, Managing Director of Tri-Star Resources, said:
"We are delighted to have achieved this significant milestone in
the development of the Roaster Project in conjunction with our
joint venture partners OIF and Castell. Both OIF and Castell bring
valuable skills and contributions to the Roaster project, and
together with Tri-Star I have full confidence that SPMP is in a
position to deliver on this critically important project for the
Company".
Enquiries:
Tri-Star Resources Plc
Emin Eyi, Managing Director Tel: +44 (0) 20 3463
Brian Spratley, Technical Director 2260
Tel: +44 (0) 1233 629
550
SP Angel Corporate Finance (Nomad
and Broker) Tel: +44 (0) 20 3463
Robert Wooldridge / Katy Birkin 2260
Greenstone Equity Partners
Alex Gemici / Omar Al-Gharabally Tel: +971 (4) 388 0488
Yellow Jersey PR Limited (Financial
PR) Tel: +44 (0) 7768 537739
Dominic Barretto / Kelsey Traynor
Keith, Bayley Roger & Co (Joint Broker) Tel: +44 (0) 20 7464
Brinsley Holman 4098
About Tri-Star Resources
Tri-Star Resources is a focused antimony company whose
management has many years experience in trading and mining this
critical mineral. The Company's objective is to become the leading
integrated antimony metal and products manufacturer to western
economy consumers utilising an environmentally advanced 20,000
tonnes per annum name plate capacity antimony metal and tri-oxide
production facility in the Gulf, with raw material supplied from
its upstream resource projects in Turkey and Canada and from third
party producers.
www.tri-starresources.com
This news release may contain "forward-looking information", as
defined under applicable Canadian securities laws. Forward-looking
information typically contains statements that relate to future,
not past, events and often contains words such as "anticipate",
"believe", "plan", "estimate", "expect", and "intend", statements
that an action or event "may", "might", "could", "should", or
"will" be taken or occur, or other similar expressions. There can
be no assurance that the forward-looking information contained in
this release will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information.
All statements, other than statements of historical fact,
included in this release including, without limitation, relating to
the incorporation of SPMP, the expected funding structure for the
capital cost of the Roaster Project and commencement of site
preparation work and construction, and the plans and expected
impact of the Roaster project, constitute forward-looking
information. Forward-looking information is based on a number of
factors and assumptions which have been used to develop such
information but which may prove to be incorrect, including, but not
limited to, assumptions in connection with the ability to satisfy
all conditions to the Shareholders Agreement, the ability to obtain
required consents and to complete construction of the Roaster
Project, the availability of financing for the cost of the Roaster
Project on acceptable terms and general economic and market
conditions. Forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause actual
results, performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information. Such factors include, among others, risks associated
with changes in laws applicable to the Roaster Project, the
volatility of commodity prices, currency exchange rates and
interest rates, and global economic conditions, and the additional
risks identified in the Company's Annual Report and Financial
Statements for the year ended 31 December 2013 or other reports and
filings with applicable securities regulators. Forward-looking
information in this release is based on the Directors' beliefs,
estimates and opinions on the date of this release and the Company
does not undertake to update publicly or revise the forward-looking
information contained in this release, except as required by
applicable securities laws.
Any financial outlook or future-oriented financial information
in this release, as defined by applicable Canadian securities laws,
has been approved by the Directors as of the date of this release.
Such financial outlook or future oriented financial information is
provided for the purpose of providing information about the
Company's current expectations and plans relating to the future.
Readers are cautioned that such outlook or information should not
be used for purposes other than for which it is disclosed in this
release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRIIMJTMBMBBFI
Tri-star Resources (LSE:TSTR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tri-star Resources (LSE:TSTR)
Historical Stock Chart
From Jul 2023 to Jul 2024
