LONDON (Alliance News) - Tri-Star Resources PLC shares dropped on Monday morning after it said it has conditionally raised GBP3.5 million after issuing loan notes and conducting a placing and subscription.
The mining company is currently developing the Roaster project in Oman which will produce antimony, an element used in batteries, low friction metals, type metal and cable sheathing, among other products.
On Monday, Tri-Star said it has conditionally raised GBP1.5 million after placing 1.27 billion new shares at 0.005 pence per share and by conducting a subscription of 222.0 million shares at 0.10 pence per share.
Tri-Star shares were down 14.8% to 0.115 pence per share on Monday morning.
In addition to the placing and subscription, Tri-Star said it has conditionally agreed to issue a further GBP2.0 million of secured convertible bonds due in 2018 to Odey European Inc, which already provides the company with a loan note facility.
The placing, subscription and new loan notes are all subject to shareholder approval at the company's general meeting due to be held on August 5.
"I am delighted to be able to announce this important fundraising by Tri-Star which will enable the company to finance its 40% equity share in the Oman Antimony Roaster joint venture as part of the total USD70 million funding package which the joint venture has arranged," said Managing Director Emin Eyi.
"The company will continue to work with its joint venture partners to bring this exciting project through construction and into production to become one of the first sizeable Western World antimony roasters designed to be fully compliant with modern environmental legislation," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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