Tri-Star Resources PLC Issue of Debt (5631I)

TIDMTSTR

RNS Number : 5631I

Tri-Star Resources PLC

22 March 2018

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

22 March 2018

Tri-Star Resources plc

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

SPMP Banking Facility & Project Update

Tri-Star is pleased to announce that its associate company, Strategic & Precious Metals Processing LLC ("SPMP"), has entered into a new banking agreement with Alizz Islamic Bank S.A.O.G ("Alizz Bank"). The new finance facility will provide $30 million to be used for a combination of project and trade finance for SPMP. The facility will rank alongside the company's existing debt provided by Bank Nizwa S.A.O.G., and brings SPMP's total debt facility to $70 million. Tri-Star has a 40% equity interest in SPMP which is constructing a roasting facility in Oman (the "Project") to process mixed antimony and gold ores.

The Honorable Salaam Al Shaksy, CEO of Alizz Islamic Bank SAOG, said: "We are proud to provide Shari'a compliant financing to SPMP proving that Islamic banking can spur more private sector growth and employment within new and prospective industries and contribute to Oman's economic diversification. Over the past four years, we have built a solid reputation in the market. Supporting the Sultanate's first antimony smelter project signifies the important role we play in Oman's banking sector and that we provide effective financial intermediation to fund further investment."

Karen O'Mahony, Acting Chief Executive Officer of Tri-Star, said: "The Board of Tri-Star, together with our partners at SPMP, are delighted to announce this new banking relationship with Alizz Bank as we have been very impressed with the quality of their management team. We would also like to thank Bank Nizwa for its continued support. We are at an exciting stage in the Project and look forward to working with all of our stakeholders as we move through commissioning to first metal production."

Project Update

Construction of the plant is ongoing with over 600 people now working on site and overall completion is at 86%. The front end of the plant, comprising of the concentrate handling shed and concentrate dryer, is complete and ready for cold commissioning.

The plant is due to produce its first antimony metal in June 2018. SPMP expects the plant to then ramp up to a production rate of between 2,000-3,000 tonnes/month by the end of the year (circa 50% of design capacity). Negotiations are also underway to sell the antimony metal to key customers and the gold doré to a gold refinery.

ENDS

Project

The Project is an antimony and gold production facility with capacity of up to 50,000 dry tonnes per annum of antimony and gold concentrate, producing up to 20,000 tonnes of antimony and 50,000 ounces of gold. The Project is based in Sohar, Oman and is being developed by SPMP, an Omani company in which Tri-Star has an equity and mezzanine debt holding. The plant will be built to the highest environmental standards and once fully operational, it will become a significant player in the antimony market.

Alizz Bank

Alizz Wholesale Banking department provides a comprehensive range of Shari'a compliant solutions to corporate, commercial and government institutions aiming at growing the Omani economy. The bank's team helps organisations achieve optimum efficiency, reliability, and above all, customer satisfaction. Structured and Project Financing is a specialised area where the experienced team identifies and arranges necessary funding solutions for various projects. The team has successfully executed transactions in various sectors including hospitality, healthcare, higher education, and oil & gas.

Enquiries:

 
 Tri-Star Resources plc              Tel: [phone] 
  Karen O'Mahony, Acting Chief        6291 
  Executive Officer 
 SP Angel Corporate Finance          Tel: +44 (0) 20 
  (Nomad and broker)                  3470 0470 
  Robert Wooldridge / Jeff Keating 
 Yellow Jersey PR Limited (Media     Tel: +44 (0) 776 
  Relations)                          932 5254 
  Charles Goodwin / Joe Burgess 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 22, 2018 03:08 ET (07:08 GMT)