Tri-Star Resources Plc Update

 
TIDMTSTR 
 
Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resource 
 
9 July 2020 
 
             Tri-Star Resources plc ("Tri-Star" or the "Company") 
 
                                    Update 
 
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, announces 
an update on its investment in Strategic & Precious Metals Processing LLC 
("SPMP"), an antimony and gold production facility in the Sultanate of Oman in 
which the Company holds a 40% equity interest. The other joint venture partners 
are the Oman Investment Authority LLC ("OIA") (40% equity holder) and DNR 
Industries Limited, part of Dutco Group in Dubai (20% equity holder). 
 
Project status 
 
By the end of Q2 2020 the individual parts of the plant had been operating for 
short periods of time at 50% of capacity.  SPMP, subject to appropriate and 
timely financing, is now working, together with its consultant engineers, 
towards reaching 100% capacity by 31 March 2021.  This is a 3 months delay from 
the expectation in May 2020. 
 
Update on COVID-19 
 
SPMP has instituted a comprehensive COVID-19 protocol which has been reviewed 
by the Ministry of Health.  There have been a small number of COVID-19 cases 
amongst the SPMP workforce but they have not substantially impacted plant 
output. 
 
Financing 
 
As announced on 15 May 2020, SPMP is continuing its discussions with local 
banks to provide a USD60m term loan facility subject to meeting certain 
criteria.  Discussion continues as to how to meet these criteria although it 
should be noted, however, that until such facilities are agreed, the future 
financing of SPMP remains uncertain. 
 
If SPMP is able to secure the USD60m term facility, SPMP will still require 
further working capital funding in order to fund the business until it is cash 
flow positive.  The final amount required will be dependent upon a number of 
factors including a) when the plant reaches full capacity; b) the price of 
Antimony; and c) any ongoing impact of COVID-19. 
 
Arbitration 
 
As announced on 8 April 2020, OIA has issued a Request for Arbitration, 
commencing an arbitration proceeding with Tri-Star, DNR and SPMP as 
Respondents.   Preliminary arguments have now been submitted to the 
Arbitrator.  If the Arbitration process runs its full course a final 
determination is not expected until the end of 2021 at the earliest. 
 
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                                              c/o SBP 
David Facey, CEO/ CFO                              Tel: [phone] 
 
St Brides Partners (Financial PR) 
Isabel de Salis / Beth Melluish                    Tel: [phone] 
 
SP Angel Corporate Finance (Nominated 
Adviser) Jeff Keating/ Caroline Rowe               Tel: [phone] 
 
finnCap Ltd (Broker) 
Christopher Raggett / Camille Gochez               Tel: [phone] 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

July 09, 2020 02:00 ET (06:00 GMT)