Tri-Star Resources Plc Commercial Grade Antimony Metal Produced
November 19 2019 - 1:00AM
UK Regulatory
TIDMTSTR
Tri-Star Resources PLC / AIM: TSTR / Sector: Natural Resources
19 November 2019
Tri-Star Resources plc ("Tri-Star" or the "Company")
Commercial Grade Antimony Metal Produced
Tri-Star Resources plc (AIM: TSTR), the minerals processing company, is pleased
to provide an update on its antimony-gold processing facility in the Port of
Sohar Free Zone, located in the Sultanate of Oman, held through its 40%
interest in Strategic & Precious Metals Processing LLC ("SPMP").
Highlights
* Produced antimony metal at the world standard commercial grade of 99.65%
* Focus now on rapid scaling of production having proven the plant's
technology
* Expressions of interest from potential customers equal to almost double the
annual combined capacity of 20,000 tonnes of antimony metal and antimony
trioxide
* Advanced agreement for the supply of approximately one third of the
feedstock required for 2020 and in discussions with other suppliers for the
balance
* Producing gold dore at grade in excess of 25%, up from 5% in October 2019,
and first sales made
Adrian Collins, Chairman of Tri-Star commented: "I am delighted that the major
milestone of producing antimony metal at a grade of 99.65% has been passed;
this proves the metallurgy of the process and enables us now to focus on
full-scale commercial production. To this end, we are advancing offtake
agreements with potential buyers keen to diversify away from their reliance on
the current dominant Chinese suppliers; expressions of interest have been
received equal to almost double our anticipated annual output of 20,000 tonnes
of antimony metal. Additionally, the gold circuit is working well, and the
first sales of gold have now been made; SPMP is continuing to improve the grade
and is now producing gold dore at a grade in excess of 25%.
"Given the robust market fundamentals for our products including high-grade
antimony ingots, antimony trioxide and gold dore together with the planned ramp
up of production, SPMP is at a tipping point, which we believe will see
shareholders rewarded for their support."
Details
Excellent progress continues at the antimony-gold processing facility in the
Port of Sohar Free Zone, located in the Sultanate of Oman, which is the largest
antimony roaster outside China and the world's first 'Clean Plant' designed to
EU environmental standards. It has a targeted capacity to produce in excess of
50,000 oz. of gold and 20,000 tonnes in combined antimony metal and antimony
trioxide ("ATO") per annum.
The facility is operated by Strategic & Precious Metals Processing LLC ("SPMP")
in which Tri-Star holds a 40% equity interest; other joint venture partners in
SPMP include the Oman Investment Fund ("OIF") (40% equity holder) and DNR
Industries Limited, part of Dutco Group in Dubai (20% equity holder).
Operational
SPMP has produced antimony metal at in excess of the world standard commercial
grade of 99.65% and is now focused on moving swiftly to full-scale commercial
production. To this end, it is confident that it will be able to reach 50% of
capacity by mid-2020 and 100% of capacity by the end of 2020, subject to the
successful completion of the current financing round, which will also secure
the necessary working capital finance. Additionally, it is producing
marketable levels of gold dore at a grade of in excess of 25%, up from 5% in
October 2019, which it has commenced selling.
Supply
SPMP has reached an agreement, subject to contract, for the supply of
approximately one third of the feedstock required for 2020 and is in
discussions with other suppliers for the balance. SPMP is confident that now
the plant's technology has been proven and as production begins to ramp up
supply contracts on appropriate terms will be reached.
Offtake
SPMP has received expressions of interest from potential customers equal to
almost double the annual combined output of 20,000 tonnes of antimony metal and
antimony trioxide. Accordingly, SPMP has confidence that there will be high
demand for its antimony output as customers wish to diversify away from their
reliance on the currently dominant Chinese suppliers of antimony and antimony
trioxide.
Financing
Discussions relating to the financing of SPMP are progressing and the market
will be updated as these are concluded. It is expected that the financing,
once completed, will be sufficient for SPMP to move to full production and
sustainable positive operating cash flow.
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: +44 (0)20 7236 1177
St Brides Partners (Financial PR)
Isabel de Salis/ Beth Melluish Tel: +44 (0)20 7236 1177
SP Angel Corporate Finance (Nominated
Adviser) Tel: +44 (0)20 3470 0470
Robert Wooldridge/Jeff Keating/Caroline Rowe
finnCap Ltd (Broker)
Scott Mathieson/Camille Gochez Tel: +44 (0)20 7220 0500
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
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