27th Apr 2015 07:40
LONDON (Alliance News) - Tri-Star Resources PLC shares rose on Monday after it said its pretax loss narrowed in 2014 after it reduced its costs as it continues to focus on the Oman antimony roaster project and potentially starting a second project in the country with its existing partners.
Tri-Star shares were down 2.3% at 0.108 pence Monday morning, having spiked to 0.125p at the open.
The company said its pretax loss narrowed to GBP2.4 million in the year ended December 31, from a GBP2.7 million loss in 2013 as share-based payments and administrative expenses fell as well as finance income increasing. The company does not currently generate any revenue.
Share-based payments only totalled GBP21,000, down from GBP413,000 a year earlier, whilst administrative costs dropped to GBP2.3 million from GBP2.7 million. Finance income, money earned from interest, rose to GBP944,000 from GBP174,000.
The company's main target remains to commence site preparation and construction of the facilities at the Oman antimony roaster project during 2015, with the aim of beginning the commissioning phase by the end of 2016.
The project is owned by Oman Investment Fund with a 40% stake, Castell Investments Ltd with a 20% stake, with Strategic and Precious Metals Processing LLC holding the balance. Tri-Star holds a 40% stake in Strategic and Precious Metals Processing.
Tri-Star said it has made "considerable progress" in securing finance for the project, with negotiations for a USD40 million banking facility underway with the expectation of securing it once the Provisional Environmental permit and Independent Engineering report have been finalised.
In addition, the company has assisted in negotiating heads of agreement for the supply of concentrate and offtake of metal, as well as related financing and other services, with Traxys Europe SA.
Tri-Star said it is also talking to existing joint venture partners in Oman about setting up a second project in the country which would utilise the infrastructure and "energy advantages" in the area.
"Going forward, we expect the remainder of the year to be a period of significant advancement for the company in its ambitions of becoming an integrated producer of antimony and in taking forward the Roaster Project through to financial close and into the construction phase," said Managing Director Emin Eyi.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
TSTR.L