Tri-Star Resources PLC Revision of Roaster Capital and Funding Structure (4116T)
July 17 2015 - 9:17AM
UK Regulatory
TIDMTSTR
RNS Number : 4116T
Tri-Star Resources PLC
17 July 2015
17 July 2015
Tri-Star Resources plc ("Tri-Star" or the "Company")
In principle agreement to revision of Oman Antimony Roaster
capital and funding structure
Tri-Star announces that it has, in principle, agreed revised
terms with joint venture partners Oman Investment Fund ("OIF") and
DNR Industries Ltd (formerly, Castell Investments Ltd) ("DNR") with
respect to the capital structure of Strategic & Precious Metals
Processing LLC ("SPMP"). SPMP is developing a 20,000 tonne per
annum antimony processing facility in Oman, the Oman Antimony
Roaster project ("OAR"). The Company has a 40% equity interest in
SPMP.
Total overall OAR funding for SPMP remains at $70 million, as
previously announced, but now this amount is expected to be made up
as follows:
- $15 million of equity to be provided by the joint venture
partners in proportion to their respective individual interests
(previously $20 million);
- A mezzanine loan facility of $15 million (previously $10 million); and
- Senior debt of $40 million (unchanged)
Under these new terms, Tri-Star's required equity contribution
to the joint venture on financial close decreases by $2 million,
from $8 million to $6 million. The above revised financial terms
remain subject to formal approval by each of OIF and DNR.
In relation to the sale of certain of the Company's intellectual
property rights ("IPR") announced on 5 June 2015, Tri-Star confirms
that it has delivered the two required third party commercial and
technical reports in draft form to SPMP. SPMP has 28 days available
to it to respond to the draft reports.
On acceptance of the reports by SPMP, the consideration for the
sale of IPR would remain up to $6 million in cash, but will now be
applied as follows:
- The first two tranches, totalling $4 million ($2.4 million net
of Tri-Star's 40% equity funding commitment to SPMP) to be made
available to Tri-Star for offset against the Company's now reduced
equity commitment to the OAR of $6 million.
- The third $2 million tranche remains payable to Tri-Star on
the commissioning of an antimony roasting pilot plant planned to be
part of the overall OAR: the net proceeds of which will amount to
the Company of $1.2 million, and will be used by Tri-Star for its
general corporate purposes.
The sale of IPR to SPMP remains conditional on SPMP achieving
financial close of the OAR, as previously announced. Financial
close will be achieved by the entry by SPMP into a definitive
facility agreement with respect to the debt financing of the
project and other closing funding conditions as set out in the SPMP
shareholders' agreement.
References in this press release to "$" means United States
Dollars.
Enquiries:
Tri-Star Resources plc Tel: +44 (0)
Emin Eyi, Managing Director 20 3470 0470
Guy Eastaugh, Chief Financial
Officer
SP Angel Corporate Finance (Nomad Tel: +44 (0)
and Broker) 20 3470 0470
Robert Wooldridge / Katy Birkin
FORWARD LOOKING INFORMATION
This press 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 report 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 press release including, without limitation,
relating to the OAR (as defined), the Company's intentions with
respect to a gold roasting facility and plans for its mineral
properties, 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 deliver any of the outcomes referred
to in respect of the OAR, the ability to complete construction of
the OAR, the availability of financing for the cost of the OAR on
acceptable terms, or likewise any facility that might process
refractory gold, 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 OAR, the ability to raise
finance on acceptable terms for any of the projects or facilities
mentioned, the volatility of commodity and raw material prices,
currency exchange rates and interest rates, global economic
conditions and the additional risks identified in this press
release or other reports and filings with applicable securities
regulators. Forward-looking information in this press release is
based on the Directors' beliefs, estimates and opinions on the date
of this press release and the Company does not undertake to update
publicly or revise the forward-looking information contained in
this press release, except as required by applicable securities
laws.
Any financial outlook or future-oriented financial information
in this press release, as defined by applicable Canadian securities
laws, has been approved by the Directors as of the date of this
press 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 press release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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