Tri-Star Resources Plc Operational Update

 
TIDMTSTR 
 
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 
 
                                                                14 January 2019 
 
             Tri-Star Resources plc ("Tri-Star" or the "Company") 
 
                              Operational Update 
 
Tri-Star (AIM: TSTR), the mining and minerals processing company, is pleased to 
announce an update from Strategic & Precious Metals Processing LLC's ("SPMP's") 
antimony-gold processing facility in Oman, in which the Company has a 
40%-shareholding, and on progress with the disposal of the Company's interest 
in the Göynük Project in Turkey. 
 
SPMP Update: 
 
The commissioning process continues at the SPMP antimony-gold processing 
facility in Oman: 
 
  * Critically, the process chemistry is now proven and crude antimony trioxide 
    ("ATO") has been produced and stockpiled in readiness for the commissioning 
    of the furnace section of the plant. 
  * While work to date demonstrates that the process is fundamentally working 
    well, certain engineering issues having been encountered for which 
    remediation requirements are understood and in process. 
  * The plant has produced a quantity of intermediate product and SPMP looks 
    forward to providing a further update on first metal once the furnace 
    commissioning is complete. As a result of the delay in first metal and full 
    commissioning of the plant, SPMP will need further funding for additional 
    capex and working capital. 
  * Such funding may be available from local Omani or international banks, from 
    other funding providers or from SPMP's shareholders. SPMP are in 
    discussions with a number of local banks who are supportive. 
  * As an interim measure SPMP has requested an additional US$10.5m from its 
    shareholders and discussions are ongoing between SPMP and its shareholders 
    as to how this finance may best be provided. 
 
Göynük Project Update: 
 
  * The Göynük Project consists of the exploration and mining rights for a 
    historical artisanal mine in a known antimony belt in the Murat Dagi 
    mountains of western Turkey, of which the Company currently owns 99.93%; 
  * Tri-Star has signed a 'Letter of Intent' with a local Turkish entity (the 
    "Purchaser"), as part of the sale process of the Göynük Project; we expect 
    the sale to close in Q1 this year; 
  * The Purchaser plans to bring the mine back into production before the end 
    of 2019 and has indicated a desire to enter into an offtake agreement with 
    SPMP which Tri-Star will facilitate. 
 
Karen O'Mahony, Acting Chief Executive Officer of Tri-Star, commented: 
 
"The SPMP management team is constantly improving the capability of this unique 
metal processing plant. Some engineering glitches have arisen during 
commissioning. However, this is not unusual. SPMP feels that the capability of 
the plant to produce antimony and other metals is now confirmed and an update 
on first metal is expected once the remediation work and furnace commissioning 
is complete. 
 
The delay means SPMP will need additional capital to finance its operations 
through to positive cashflow and management are engaged with a number of local 
banks who continue to be supportive. Whilst SPMP has requested an additional 
$10.5m from its shareholders, we are discussing the best approach to this 
funding, including speaking to local lenders and other funding providers. 
 
The Tri-Star board has made a strategic decision to sell its Turkish operations 
to a partner who can bring the mine into production. We look forward to 
introducing SPMP to the Purchaser with a potential antimony feedstock supply 
agreement in mind." 
 
                                     ENDS 
 
Enquiries: 
 
Tri-Star Resources plc 
Karen O'Mahony, Acting CEO/ CFO                            Tel: +44 (0)20 7653 
6291 
 
Tavistock Communications Ltd                                Tel:  +44 (0) 20 
7920 3150 
Charles Vivian 
Mobile: +44 (0) 7977297903 
 
Gareth Tredway                                                          Mobile: 
+44 (0) 7785974264 
 
SP Angel Corporate Finance (Nominated Adviser) 
Robert Wooldridge/Jeff Keating                                 Tel: +44 (0)20 
3470 0470 
 
FinnCap Ltd (Broker) 
Christopher Raggett/ Scott Mathieson                       Tel: +44 (0)20 7220 
0500 
 
Notes to the Editor 
 
Tri-Star's principal activities are in an antimony and gold production facility 
(the "SPMP Project" or the "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 and Turkey and a 
mining permit in Turkey which are held for their potential contribution of 
feedstock to the SPMP Project. 
 
 
 
END
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