19 Aug 2019 07:00
Tri-Star Resources Plc - First Commercial Grade Dore ProducedTri-Star Resources Plc - First Commercial Grade Dore Produced
PR Newswire
London, August 18
Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resources
19 August 2019
Tri-Star Resources plc ("Tri-Star" or the "Company")
First Commercial Grade Dore Produced at Antimony-Gold Processing Facility and
Purity of Antimony Metal Improves
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is pleased to announce that production of commercial grade dore has commenced at the antimony-gold processing facility in the Port of Sohar Free Zone located in the Sultanate of Oman (“the Project”), which is owned by Strategic & Precious Metals Processing LLC (“SPMP”) in which the Company holds a 40% interest.
Overview:
SPMP produced first ingot with a gold concentration in excess of 2%, the minimum commercial grade Focused on ramping up production and building volumes for sale Purity of antimony metal increased to 99.11% up from 98% in July 2019 SPMP is confident of increasing the purity of antimony metal to the commercial grade of 99.65% plus Advancing negotiations in respect of converting SPMP’s existing mezzanine loans into an interest free shareholder loan and/or equityAdrian Collins, Chairman of Tri-Star commented: “Production of first commercial grade dore is a significant milestone as we look to advance the development of this exciting gold and antimony project and build a leading global position in the market. Whilst there are still challenges to overcome, we have reached a tipping point that will, I believe, result in accelerated activity over the next few months; we look forward to updating shareholders on progress.”
Details
SPMP has produced first ingot with a gold concentration in excess of 2%, the minimum commercial grade. The focus is now on ramping up production and building volumes for sale. Importantly, SPMP is now producing antimony metal at a purity of 99.11% up from 98% as announced on 22 July 2019. Whilst this is still below the commercial grade of 99.65%, the SPMP team is confident that this will be achieved as production increases and the normal fine-tuning adjustments are made, although there remain a number of operational challenges to overcome.
Additionally, negotiations in respect of converting SPMP’s existing mezzanine loans into an interest free shareholder loan and/or equity are ongoing 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.
Tri-Star has a 40% shareholding in SPMP with the other joint venture partners being The Oman Investment Fund (40% equity holder) and DNR Industries Limited, part of Dutco Group in Dubai (20% equity holder).
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 until the release of this announcement.
**ENDS**
For further information please visit www.tri-starresources.com or contact:
| Tri-Star Resources plc David Facey, CEO/ CFO | c/o SBP Tel: +44 (0)20 7236 1177 |
| St Brides Partners (Financial PR) Isabel de Salis / Beth Melluish | Tel: +44 (0)20 7236 1177 |
| SP Angel Corporate Finance (Nominated Adviser) Robert Wooldridge / Jeff Keating | Tel: +44 (0)20 3470 0470 |
| finnCap Ltd (Broker) Scott Mathieson / Camille Gochez | Tel: +44 (0)20 7220 0500 |
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.