Tri-Star Resources PLC Conditional sale of IPR for up to $6 million (2958P)

TIDMTSTR

RNS Number : 2958P

Tri-Star Resources PLC

05 June 2015

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

Conditional sale of Intellectual Property Rights for up to $6 million

5 June 2015

Tri-Star, the AIM quoted company developing an antimony processing facility in Oman, announces that it has agreed the conditional sale of certain intellectual property rights ("IPR") to Strategic & Precious Metals Processing LLC ("SPMP"), a company registered in the Sultanate of Oman and of which Tri-Star owns 40%.

The sale, which is being effected by way of an assignment of IPR to SPMP covers all Tri-Star's developed and proprietary intellectual property rights relating to clean antimony concentrate roasting and the related clean roasting of refractory gold.

The transaction is conditional on SPMP achieving financial close of its Oman Antimony Roaster Project ("OAR"), a 20,000 tonne per year antimony roasting facility being developed in Sohar, Oman. Financial close will be the entry by SPMP into a definitive facility agreement with respect to the debt financing of the project and other closing funding conditions as set out in the SPMP shareholders' agreement.

The consideration for the sale of IPR is up to US$6.0 million in cash payable by SPMP, of which:

   -     US$2.0 million is payable on financial close of the OAR; 

- US$2.0 million is payable on the receipt of certain third party reports to be delivered to SPMP relating to the commercial and technical viability of the technology as it relates to refractory gold processing; and

- US$2.0 million is payable on the commissioning of an antimony roasting pilot plant planned to be part of the overall OAR.

Under Tri-Star's accounting policies, the costs of developing the IPR subject to the sale have been expensed as incurred and so a book value of GBPnil is attributed in the accounts of Tri-Star.

The net cash receipts of the sale will amount to up to US$3.6 million (approximately GBP2.35 million) being the maximum sales receipts of US$6.0 million less Tri-Star's 40% equity funding commitment to SPMP. These funds will be applied to finance Tri-Star's equity commitment to the OAR and for general corporate purposes.

Enquiries:

 
 Tri-Star Resources plc              Tel: +44 (0) 
  Emin Eyi, Managing Director         20 3470 0470 
  Guy Eastaugh, Chief Financial 
  Officer 
 SP Angel Corporate Finance (Nomad   Tel: +44 (0) 
  and Broker)                         20 3470 0470 
  Robert Wooldridge / Katy Birkin 
 

FORWARD LOOKING INFORMATION

This press release may contain "forward-looking information", as defined under applicable Canadian securities laws. Forward-looking information typically contains statements that relate to future, not past, events and often contains words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. There can be no assurance that the forward-looking information contained in this report will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.

All statements, other than statements of historical fact, included in this press release including, without limitation, relating to the OAR (as defined), the Company's intentions with respect to a gold roasting facility and plans for its mineral properties, constitute forward-looking information. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the ability to deliver any of the outcomes referred to in respect of the OAR, the ability to complete construction of the OAR, the availability of financing for the cost of the OAR on acceptable terms, or likewise any facility that might process refractory gold, and general economic and market conditions. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks associated with changes in laws applicable to the OAR, the ability to raise finance on acceptable terms for any of the projects or facilities mentioned, the volatility of commodity and raw material prices, currency exchange rates and interest rates, global economic conditions and the additional risks identified in this press release or other reports and filings with applicable securities regulators. Forward-looking information in this press release is based on the Directors' beliefs, estimates and opinions on the date of this press release and the Company does not undertake to update publicly or revise the forward-looking information contained in this press release, except as required by applicable securities laws.

Any financial outlook or future-oriented financial information in this press release, as defined by applicable Canadian securities laws, has been approved by the Directors as of the date of this press release. Such financial outlook or future oriented financial information is provided for the purpose of providing information about the Company's current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this press release.

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