14 Jan 2019 07:00
Tri-Star Resources Plc - Operational UpdateTri-Star Resources Plc - Operational Update
PR Newswire
London, January 14
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
14 January 2019
Tri-Star Resources plc ("Tri-Star" or the "Company")
Operational Update
Tri-Star (AIM: TSTR), the mining and minerals processing company, is pleased to announce an update from Strategic & Precious Metals Processing LLC’s ("SPMP’s") antimony-gold processing facility in Oman, in which the Company has a 40%-shareholding, and on progress with the disposal of the Company’s interest in the Göynük Project in Turkey.
SPMP Update:
The commissioning process continues at the SPMP antimony-gold processing facility in Oman:
Critically, the process chemistry is now proven and crude antimony trioxide (“ATO”) has been produced and stockpiled in readiness for the commissioning of the furnace section of the plant. While work to date demonstrates that the process is fundamentally working well, certain engineering issues having been encountered for which remediation requirements are understood and in process. The plant has produced a quantity of intermediate product and SPMP looks forward to providing a further update on first metal once the furnace commissioning is complete. As a result of the delay in first metal and full commissioning of the plant, SPMP will need further funding for additional capex and working capital. Such funding may be available from local Omani or international banks, from other funding providers or from SPMP’s shareholders. SPMP are in discussions with a number of local banks who are supportive. As an interim measure SPMP has requested an additional US$10.5m from its shareholders and discussions are ongoing between SPMP and its shareholders as to how this finance may best be provided.Göynük Project Update:
The Göynük Project consists of the exploration and mining rights for a historical artisanal mine in a known antimony belt in the Murat Dagi mountains of western Turkey, of which the Company currently owns 99.93%; Tri-Star has signed a ‘Letter of Intent’ with a local Turkish entity (the “Purchaser”), as part of the sale process of the Göynük Project; we expect the sale to close in Q1 this year; The Purchaser plans to bring the mine back into production before the end of 2019 and has indicated a desire to enter into an offtake agreement with SPMP which Tri-Star will facilitate.Karen O’Mahony, Acting Chief Executive Officer of Tri-Star, commented:
“The SPMP management team is constantly improving the capability of this unique metal processing plant. Some engineering glitches have arisen during commissioning. However, this is not unusual. SPMP feels that the capability of the plant to produce antimony and other metals is now confirmed and an update on first metal is expected once the remediation work and furnace commissioning is complete.
The delay means SPMP will need additional capital to finance its operations through to positive cashflow and management are engaged with a number of local banks who continue to be supportive. Whilst SPMP has requested an additional $10.5m from its shareholders, we are discussing the best approach to this funding, including speaking to local lenders and other funding providers.
The Tri-Star board has made a strategic decision to sell its Turkish operations to a partner who can bring the mine into production. We look forward to introducing SPMP to the Purchaser with a potential antimony feedstock supply agreement in mind.”
ENDS
Enquiries:
Tri-Star Resources plcKaren O’Mahony, Acting CEO/ CFO Tel: +44 (0)20 7653 6291
Tavistock Communications Ltd Tel: +44 (0) 20 7920 3150Charles Vivian Mobile: +44 (0) 7977297903
Gareth Tredway Mobile: +44 (0) 7785974264
SP Angel Corporate Finance (Nominated Adviser)Robert Wooldridge/Jeff Keating Tel: +44 (0)20 3470 0470
FinnCap Ltd (Broker)Christopher Raggett/ Scott Mathieson Tel: +44 (0)20 7220 0500
Notes to the Editor
Tri-Star’s principal activities are in an antimony and gold production facility (the “SPMP Project” or the “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 and Turkey and a mining permit in Turkey which are held for their potential contribution of feedstock to the SPMP Project.