Tri-Star Resources Plc First Metal Update, SPMP Funding and Turkey Sale

 
TIDMTSTR 
 
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 
 
                                                                24 January 2019 
 
             Tri-Star Resources plc ("Tri-Star" or the "Company") 
 Update on First Metal, SPMP Funding and Disposal of Göynük Project in Turkey 
 
Tri-Star (AIM: TSTR), the mining and minerals processing company, is pleased to 
announce that management at Strategic & Precious Metals Processing LLC ("SPMP") 
in Oman, which Tri-Star has a 40% shareholding, expects the initial production 
of pure antimony metal to take place in the next week. 
 
The event is a key milestone for SPMP as it proves all aspects of this 
technologically advanced facility are functional and the country of Oman can 
boast a world-class, strategic industrial asset. 
 
The production of first metal is also a key requirement in obtaining a 
long-term finance package for the plant and the board of Tri-Star understands 
that SPMP is well advanced in these discussions. 
 
As was recently announced, SPMP has requested an additional US$10.5m from its 
shareholders. The Company is confident that an equity placing will not be 
required in order to meet its 40% share of the funding requirement. 
 
In addition, the disposal of the Company's interest in the Göynük mine in 
Turkey has completed for a total cash consideration of US$500,000, with the 
first tranche of US$200,000 already received by Tri-Star. 
 
Highlights of Göynük Transaction: 
 
  * The Göynük mine 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 Sale Purchase Agreement ("SPA") with a local Turkish 
    entity which has experience in mining (the "Purchaser"); 
  * Under the terms of the SPA the Purchaser will pay US$500,000 cash to 
    Tri-Star in three tranches, the first was paid on the signing of the SPA on 
    21 January 2019, the second payment falls due upon share transfer, and the 
    third payment of US$100,000 falls due on the first sale of material from 
    the mine; 
  * Following the closing of the transaction, the Purchaser plans to bring the 
    mine back into production before the end of 2019; 
  * Tri-Star is facilitating an offtake contract between the Purchaser and 
    SPMP. 
 
Karen O'Mahony, Acting Chief Executive Officer of Tri-Star, commented: 
 
"We are pleased that first metal is now imminent. 
 
The SPMP Plant is a key strategic asset for Oman with very strong backing from 
the country's Government - who have shown exceptional support for the Project. 
The success of the Project demonstrates the potential that can be realised 
through Foreign Direct Investment in Oman by international partners, 
particularly the UK, with whom the country enjoys a special relationship. 
 
In Turkey, the new owners of the Göynük Project are extremely keen to advance 
its development, which will help secure feedstock for the Company's flagship 
SPMP Project. We look forward to continuing to work with the purchaser post 
completion so that we can establish an offtake agreement for SPMP for the 
Göynük production." 
 
                                     ENDS 
 
Enquiries: 
 
Tri-Star Resources plc 
Karen O'Mahony, Acting CEO/ CFO 
            Tel: [phone] 
 
Tavistock Communications Ltd 
Charles Vivian/ Gareth Tredway 
            Tel [phone] 
 
SP Angel Corporate Finance (Nominated Adviser) 
Robert Wooldridge/ Jeff Keating 
            Tel: [phone] 
 
FinnCap Ltd (Broker) 
Christopher Raggett/Scott Morrison/Camille Gochez                        Tel: 
[phone] 
 
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 which is held for its 
potential contribution of feedstock to the SPMP Project. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 24, 2019 07:34 ET (12:34 GMT)