Tri-Star Resources PLC / AIM: TSTR /
Sector: Natural Resource
9 July 2020
Tri-Star Resources
plc ("Tri-Star" or the "Company")
Update
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
Authority LLC (“OIA”) (40% equity holder) and DNR Industries
Limited, part of Dutco Group in Dubai (20% equity holder).
Project status
By the end of Q2 2020 the individual parts of the plant had been
operating for short periods of time at 50% of capacity. SPMP,
subject to appropriate and timely financing, is now working,
together with its consultant engineers, towards reaching 100%
capacity by 31 March 2021. This is a 3 months delay from the
expectation in May 2020.
Update on COVID-19
SPMP has instituted a comprehensive COVID-19 protocol which has
been reviewed by the Ministry of Health. There have been a
small number of COVID-19 cases amongst the SPMP workforce but they
have not substantially impacted plant output.
Financing
As announced on 15 May 2020, SPMP
is continuing its discussions with local banks to provide a
USD60m term loan facility subject to
meeting certain criteria. Discussion continues as to how to
meet these criteria although it should be noted, however, that
until such facilities are agreed, the future financing of SPMP
remains uncertain.
If SPMP is able to secure the USD60m term facility, SPMP will still require
further working capital funding in order to fund the business until
it is cash flow positive. The final amount required will be
dependent upon a number of factors including a) when the plant
reaches full capacity; b) the price of Antimony; and c) any ongoing
impact of COVID-19.
Arbitration
As announced on 8 April 2020, OIA
has issued a Request for Arbitration, commencing an arbitration
proceeding with Tri-Star, DNR and SPMP as Respondents.
Preliminary arguments have now been submitted to the
Arbitrator. If the Arbitration process runs its full course a
final determination is not expected until the end of 2021 at the
earliest.
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
David Facey, CEO/ CFO |
c/o SBP
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) Jeff Keating/ Caroline Rowe |
Tel: +44 (0)20 3470 0470 |
finnCap Ltd
(Broker)
Christopher Raggett / 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.