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
David Facey, CEO/ CFO |
c/o SBP
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)
Robert Wooldridge/Jeff Keating/Caroline Rowe |
Tel: +44 (0)20 3470 0470 |
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.