Commercial Grade Antimony Metal Produced

Tri-Star Resources Plc - Commercial Grade Antimony Metal Produced

PR Newswire

London, November 18

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

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:

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.