Tri-Star Resources Plc Update on SPMP

 
TIDMTSTR 
 
Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resource 
 
8 April 2020 
 
             Tri-Star Resources plc ("Tri-Star" or the "Company") 
 
                                Update on SPMP 
 
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, announces 
an update on its investment in Strategic & Precious Metals Processing LLC 
("SPMP") an antimony and gold production facility in the Sultanate of Oman in 
which the Company holds a 40% equity interest.  The other joint venture 
partners are The Oman Investment Fund Holding Company LLC ("OIF") (40% equity 
holder) and DNR Industries Limited ("DNR") (20% equity holder). 
 
Operations 
 
Ramp up of antimony production is continuing at a steady pace moving towards 
operating at 50% capacity in the near future following which, SPMP expects to 
move to full capacity by the end of the year, subject to any impact upon 
operations caused by the Coronavirus pandemic (see below). 
 
SPMP started producing and selling gold in November 2019. 
 
Financing of SPMP 
 
SPMP has signed a term sheet with local banks to provide a USD 60m term loan 
facility.  In addition, the banks have expressed an interest in providing a 
working capital facility of up to USD45m (out of a total required of USD 60m as 
announced on 3 January 2020) subject to meeting certain criteria. 
 
A total of USD40m has been injected by OIF and DNR into SPMP on terms which 
have yet to be agreed between the shareholders. 
 
OIF has issued a Request for Arbitration, commencing an arbitration proceeding 
with Tri-Star, DNR and SPMP as Respondents.  OIF seeks declaratory relief, 
inter alia, that the funds invested by OIF and DNR in SPMP be considered as 
equity at a price to be determined by way of valuation.  Under Omani law, a 
unanimous resolution of the shareholders is required to increase the share 
capital of SPMP.  Tri-Star has previously exercised its right not to adopt such 
a resolution.  Tri-Star's legal advice is that OIF's claim has no merit and is, 
in fact contrary to the terms of the Shareholders' agreement and the provisions 
of Omani law in this regard and, accordingly, Tri-Star intends to vigorously 
defend this action. 
 
The duration of the arbitration proceedings could be lengthy but Tri-Star will 
continue to seek consensus with OIF and DNR as to the terms upon which their 
funding has already been provided. 
 
Effect of the Coronavirus pandemic 
 
To date the Coronavirus pandemic has had little impact upon the operations of 
SPMP.  The situation is changing rapidly, however, with access to the Freezone 
due to be restricted. SPMP is working with the authorities to agree a plan that 
allows critical employees to continue working, on a safe basis, to ensure that 
production can be maintained. 
 
The Coronavirus pandemic has had a negative impact upon the antimony market and 
prices, in particular France and Belgium (the two biggest consumers of antimony 
metal outside of China), are in "lock down".  Nevertheless, this is not 
expected to have a significant impact upon the long-term viability of the plant 
as prices are expected to recover in the medium term.  The Coronavirus pandemic 
may have an impact upon supply of feedstock whilst there are restrictions in 
movement and mining activities. 
 
Extension to filing deadline for Final Results due to the Coronavirus pandemic 
 
Tri-Star also announces that there will be a delay in the publication of the 
Company's audited financial results for the year ended 31 December 2019 ("Final 
Results"). 
 
At the request of the Company's auditors, Grant Thornton, the Company has 
requested and received an extension to its filing deadline for its Final 
Results from 30 June 2020 to 30 September 2020. This is in light of the fact 
that Grant Thornton are presently unable to review SPMP's audit files in Oman 
due to a firm-wide travel ban as a result of the Coronavirus pandemic. 
 
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: 
 
Tri-Star Resources plc                                              c/o SBP 
David Facey, CEO/ CFO                              Tel: +44 (0)20 7236 1177 
 
St Brides Partners (Financial PR) 
Isabel de Salis / Beth Melluish                    Tel: +44 (0)20 7236 1177 
 
SP Angel Corporate Finance (Nominated 
Adviser)                                           Tel: +44 (0)20 3470 0470 
Jeff Keating / Caroline Rowe 
 
finnCap Ltd (Broker) 
Scott Mathieson / Camille Gochez                   Tel: +44 (0)20 7220 0500 
 
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. 
 
 
 
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