Tri-Star Resources PLC Oman Antimony Roaster project update (8153W)
August 24 2015 - 2:00AM
UK Regulatory
TIDMTSTR
RNS Number : 8153W
Tri-Star Resources PLC
24 August 2015
24 August 2015
Tri-Star Resources plc ("Tri-Star" or the "Company")
Oman Antimony Roaster project update
Tri-Star announces that Strategic & Precious Metals
Processing LLC ("SPMP") has entered into definitive agreements with
regard to the provision of a $40 million debt facility ("Senior
Debt") with Bank Nizwa SAOG. SPMP's shareholders have also reached
agreement as to the equity funding structure of 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.
OAR funding is confirmed as $70 million, and made up as
follows:
- $15 million of equity is being provided by the joint venture
partners in proportion to their respective individual interests. In
accordance with the terms of the shareholders agreement, the
Company's share, of $6 million, will be put aside into a designated
account on financial close
- A mezzanine loan facility of $15 million; and
- Senior Debt of the Omani equivalent of $40 million
In relation to the sale of certain of the Company's intellectual
property rights ("IPR") on financial close Tri-Star is to receive
the first two tranches of consideration due under the Assignment
Agreement dated 5 June 2015. The only remaining condition being the
funding condition which will be satisfied on the transfer of equity
funds to SPMP.
The consideration for the sale of IPR is up to $6 million in
cash, receivable as follows:
- The first two tranches, totalling $4 million are to be
received by Tri-Star on financial close and will be offset against
the Company's equity commitment of $6 million, noted above.
- A $2 million tranche remains payable to Tri-Star on the
commissioning of an antimony roasting pilot plant, part of the
overall OAR and will be used by Tri-Star for general corporate
purposes.
Emin Eyi, Managing Director of Tri-Star, said "This is an
important development for Tri-Star and its joint venture partners.
Financial close of the Roaster Project will enable SPMP to move on
to the detailed engineering and technical work required in order to
commence construction. Securing the debt facility also acknowledges
all SPMP's stakeholders' confidence in Tri-Star's clean roasting
technology that Tri-Star has brought to Oman. We expect to be
commissioning the plant during the course of 2016, with commercial
production by 2017".
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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