22 Jul 2019 07:00
Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resources
22 July 2019
Tri-Star Resources plc ("Tri-Star" or the "Company")
First Antimony metal produced
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is pleased to announce that 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, has produced its first antimony metal. Tri-Star has a 40% shareholding in SPMP 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).
Following the completion of the remedial works to one of the two SPMP antimony smelting furnaces ('RF1') and the installation of a new gas cooling solution, first antimony has been produced at a purity of 98%. As production increases, this is expected to rise to in excess of 99.65%, the level required for commercial sale.
With the process proven, SPMP intends to begin the immediate ramp up of production with and to commence replicating the successful remedial works conducted at RF1 at the second furnace ('RF2') to reach full production during 2020. The Board is confident about the demand fundamentals of antimony and looks forward to the ramp up and commercial sales.
The gold recovery circuit is now also proven and operational. To date gold concentration in the alloy production remains at testing rather than commercial levels. As levels increase, the production will be refined further in order to produce commercial grade gold dore. This opens up a dual revenue stream opportunity for SPMP.
The Board is also pleased to announce the appointment of Wally Channon as an advisor to the Company. Wally has an MSc in metallurgical engineering and has over 40 years' experience operating and running metal processing plants. Wally's experience includes 25 years at Anglo American and also at Zimbabwe Platinum Mines and Shanta Gold.
As previously announced, SPMP has engaged Hannam & Partners to secure further debt funding. This process is continuing and further updates will be made in due course.
Adrian Collins, Chairman of Tri-Star commented: "The production of antimony is a milestone in the history of SPMP and Tri-Star. We believe the project is coming to fruition and I would like to congratulate the SPMP team for the work that they have done over the last 9 months in overcoming the significant technical issues faced. I look forward to updating the market as the ramp up of antimony production progresses, production of gold ore increases and the true value potential of the SPMP project materialises."
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/ Priit Piip |
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.