Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resource
9 July 2020
Tri-Star Resources plc ("Tri-Star" or the "Company")
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).
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.
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.
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.
For further information, please visit www.tri-starresources.com or contact:
Tri-Star Resources plc
St Brides Partners (Financial PR)
SP Angel Corporate Finance (Nominated Adviser) Jeff Keating/ Caroline Rowe
finnCap Ltd (Broker)
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.