27 Sep 2013 11:24
27 September 2013
Tri-Star Resources Plc
("Tri-Star Resources" or the "Company")
Drawdown of Convertible Bonds
The Company announces that, further to the announcement on 20 June 2013 detailing the private placing of £4.0 million secured convertible bonds due June 2018 ("Convertible Bonds") with Odey European Inc. ("Odey") and the drawdown of the first tranche of £1.33 million, the balance of £2.67 million has today been drawn down by the Company.
The Convertible Bonds carry a non-cash coupon of 15% per annum which compounds half yearly and are secured by way of a guarantee and debenture granted by Tri-Star Antimony Canada, Inc., the Company's wholly owned subsidiary which holds all of the Company's Canadian assets, which, subject to completion of the acquisition of Portage Minerals Inc. ("Portage"), will also include the assets of Portage.
The Convertible Bonds are redeemable at 100% of their principal amount plus accrued interest and, unless previously redeemed, converted or cancelled, will mature on the fifth anniversary of the issue of the Convertible Bonds in June 2018.
The Convertible Bonds are convertible at 100% of their principal amount plus accrued interest at the holder's option into ordinary shares of 0.005 pence each in the capital of the Company at a conversion price which is fixed at the time of conversion at a 10% discount to the lower of:
· the latest equity funding round completed prior to the issue of the conversion notice; and
· any equity funding round completed within 10 business days following the issue of the conversion notice.
The Convertible Bonds will not be listed and are transferable.
The proceeds of the Convertible Bonds issue will be used to complete the acquisition of Portage and meet other working capital requirements, and in conjunction with other funding sources, to finance the Company's share of its roaster project in the Gulf.
Enquiries:
Tri-Star Resources Plc Emin Eyi, Managing Director Brian Spratley, Technical Director |
Tel: +44 (0)20 3463 2270 Tel: +44 (0)1233 629 550
|
Strand Hanson Limited (Nomad) James Harris / Richard Tulloch
| Tel: +44 (0)20 7409 3494
|
SP Angel Corporate Finance LLP (Joint Broker) Robert Wooldridge / Katy Birkin
| Tel: +44 (0)20 3463 2260 |
Keith, Bayley, Rogers & Co Limited (Joint Broker) Simon Frost / Brinsley Holman | Tel: +44 (0)20 3100 8300 |
About Tri-Star Resources
Tri-Star Resources is a focused antimony company whose management has many years experience in trading and mining this critical mineral. The Company objective is to become the leading integrated antimony metal and products manufacturer to western economy consumers utilising a new technical and environmentally advanced 20,000 tonnes per annum name plate capacity metal and tri-oxide production facility in the Gulf, with raw material supplied from its upstream resource projects in Turkey and Canada and from third party producers.
Further information is available at www.tri-starresources.com.