(Sharecast News) - Minerals processing company Tri-Star Resources updated the market on Wednesday on its investment in Strategic & Precious Metals Processing (SPMP), an antimony and gold production facility in Oman, in which it holds a 40% equity interest.
The AIM-traded firm said the other joint venture partners are the Oman Investment Fund at 40%, and DNR Industries - part of the Dubai-based Dutco Group - at 20%.
It confirmed that SPMP has sold, and on 6 May shipped, its first consignment of antimony, comprising 60 tonnes of antimony metal ingots.
The company described it as "an important step" in the ramp-up of operations at SPMP, with management expecting the plant to be operating at 50% capacity by the end of the second quarter, and 100% by the end of the year.
Following the diagnosis of an employee operating in the roaster section of the plant having tested positive for Covid-19, Tri-Star said SPMP executed its coronavirus mitigation protocol successfully in accordance with Ministry of Health's published guidelines.
"In accordance with these guidelines, a number of employees have been placed in isolation for a period of 14 days, which will have a consequent short-term impact upon production," the board said in its statement.
"SPMP's management is developing a plan to resume production on the roaster on a limited basis with the personnel allowed to remain on site."
As it announced on 8 April, SPMP was continuing its discussions with local banks to provide a $60m term loan facility, those banks having expressed an interest in providing a working capital facility of up to $45m out of the total $60m required, subject to meeting certain criteria.
"It should be noted, however, that until such facilities are agreed, the future financing of SPMP remains uncertain."
Tri-Star also updated the market on its 8 April announcement, when the Oman Investment Fund issued a request for arbitration, to begin proceedings with Tri-Star, DNR and SPMP as respondents.
"A sole arbitrator has now been appointed but has yet to make contact with the parties," the board said.
At 1354 BST, shares in Tri-Star Resources were down 4.15% at 19.65p.
16 Jul 2014 09:09