Tri-Star Resources Plc Update
July 09 2020 - 2:00AM
UK Regulatory
TIDMTSTR
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 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) 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.
END
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