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.”
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