TSTR.L Regulatory News (TSTR)

Tri-Star Resources Plc - AGM Statement

PR Newswire

London, July 24

Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resources

24 July 2019

Tri-Star Resources plc ("Tri-Star" or the "Company")AGM Statement

Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is holding its AGM today. At the meeting, the Chairman, Adrian Collins will make the following statement:

“As shareholders would have noted, the antimony-gold processing facility in the Sultanate of Oman (the Project’) being developed by Strategic & Precious Metals Processing LLC (“SPMP”), in which we have a 40% stake, is now showing strong signs of progress. The Project is the largest antimony roaster outside of China and the world’s first ‘Clean Plant’, designed to EU environmental standards with 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.

“With the announcement of maiden production of antimony metal and the news that the gold recovery circuit is now proven and operational, we believe the Project is entering the next stage of its development. Accordingly, we are looking forward to providing regular updates as production of both commodities is ramped up and levels reach commercial purity and quantities.

“We have all had to be patient over the last twelve months with the on-ground team having to both identify the issues with the Project and apply the relevant remedial work. A new gas cooling solution was installed, and the first antimony smelting furnace bought on stream. Work will now be carried out on the second furnace. There are improvements to be made, however, we are confident from the early results that the team is on the right track and can deliver full production in 2020. We are beholden to the SPMP team for development on the Project but will endeavour to update the market as regularly as possible.

“We initiated an internal review and as a result have made several changes. Cost cutting is on-going with one of the Board’s main targets being to keep the overhead to a minimum, and commensurate with the Company’s status as a holding company whose principal asset is its minority investment SPMP. To ensure we are more technically aligned at the Project level, we appointed Wally Channon as an advisor to the Company. He has an MSc in metallurgical engineering and over 40 years' experience operating and running metal processing plants; I believe he will make a significant positive contribution to SPMP on our behalf.

“With regards to funding, negotiations are ongoing regarding the conversion of SPMP’s existing mezzanine loans into an interest free shareholder loan and/or equity and it is expected that final terms will be agreed and the conversion to happen prior to the conclusion of the current round of SPMP debt funding. 

“In my short tenure as Chairman of the Company, I have witnessed much progress and would like to thank all stakeholders for their continuing support for our unique proposition in terms of commodity mix and partners. We continue to believe in the strong long-term fundamentals for antimony metal and the potential for the Project to become a critical component in the global supply chain. The revenue generated from this, as well as that from the significant gold dory production circuit, should translate into significant long term value for Tri-Star and reward shareholders for their support.” 

**ENDS**

For further information please visit www.tri-starresources.com or contact:

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. Tri-Star also has antimony exploration licenses in Canada which are held for their potential contribution of feedstock to the SPMP Project.