14th Apr 2014 13:37
LONDON (Alliance News) - Tri-Star Resources PLC Monday inked an agreement with Oman Investment Fund and Castell Investments Ltd to establish a joint venture, Strategic & Precious Metals Processing LLC.
The joint venture company will construct and operate a 20,000 tonne per year metal and tri-oxide manufacturing roasting facility in Oman.
Under the agreement Tri-Star will own 40% of the joint venture, Oman Investment will own 40% and Castell will own the remaining 20%. On the joint venture's board, three of the directors will be appointed by Oman Investment, two by Tri-Star, one by Castell and one jointly by Tri-Star and Castell.
The project is subject to securing finance and getting the necessary permits; Tri-Star expects to fund the project by raising at least USD30 million with local and regional banks.
Oman Investment will contribute a loan of USD10 million.
As part of the arrangement the joint venture will own Tri-Star's intellectual property for environmentally compliant roasting of refractory ore and other potential mineral processing operations.
Tri-Star said that it is working towards construction during 2014; it is expected to take up to 18 months to complete construction. Operations are expected to begin in 2016.
Shares in Tri-Star were trading up 6.8%% at 0.213 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
TSTR.L