RE: T!Ts24 Jun 2019 08:08
June 2019, 07:00
Source - PRN
https://www.investegate.co.uk/tri-star-resources-plc--tstr-/prn/spmp-operational-update/20190624070000PF9B0/
24 June 2019
Tri-Star Resources plc
("Tri-Star" or the "Company")
SPMP Operational Update
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is pleased to announce an update on the operations of Strategic & Precious Metals Processing LLC (“SPMP”), owner of an antimony-gold processing facility in the Port of Sohar Free Zone, located in the Sultanate of Oman. Tri-Star has a 40% shareholding in the Project with the other joint venture partners being The Oman Investment Fund (“OIF”) (40% equity holder) and DNR Industries Limited, part of Dutco Group in Dubai (20% equity holder).
Processing
The SPMP plant is the largest antimony roaster outside of China and the world’s first ‘Clean Plant’, designed to EU environmental standards. It has a targeted capacity to produce in excess of 50,000 oz. of gold and 20,000 tonnes in combined antimony metal and antimony trioxide (“ATO”) per annum.
The remedial works to resolve the technical issues announced on 18 February 2019 are largely completed, in particular, the installation of a new gas cooling solution and modifications to the electric furnace have been successfully tested with a variety of calcine inputs. SPMP now expects to be able to move to the production phase of processing antimony and gold dore.
Accordingly, the Company looks forward to making further announcements in this regard over the coming months as ramp up commences. It should be noted, however, that similar to all complicated engineering processes, there may be unforeseen issues that will need to be solved.
Feedstock supply
Discussions are progressing in relation to the supply of the appropriate range and volumes of concentrate available to SPMP. The Company has had discussions with a range of third parties and is confident on sourcing all materials necessary to facilitate targeted production levels.
Offtake agreements
As the facility approaches production, SPMP is committing additional resources to progressing offtake agreements with a number of potential customers internationally. The SPMP Board does not expect securing such offtake agreements to be problematic once the plant nears commercial production.
Financing
As previously announced, the delay of over a year in commencing metal production together with the cost of remedial works, has increased SPMP’s funding requirements. Accordingly, SPMP has appointed Hannam & Partners (“H&P) to secure further debt funding for SPMP. It is considered by the SPMP board that the most likely funding sources will be the regional banks and specialist debt investors. It is not expected that Tri-Star will participate in the debt fund raising.
It remains the intention, as noted in the announcement dated 20 March 2019, that approximately US$52 million of SPMP’s existing Mezzanine Loan (including accrue
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