Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Tri-Star to raise money to maintain its stake in SPMP

Tri-Star is expected to be required to invest in Strategic & Precious Metal Processing in order to maintain its 40% equity stake in the Sohar antimony and gold processing facility construction project
Pounds
Funds managed by Odey, which has a 65% stake in Tri-Star, have committed to invest up to £13.0mln in the placing

Mining company Tri-Star Resources PLC (LON:TSTR) is to raise £13mln through a placing of shares at 43p a pop.

Most of the net proceeds from the placing will be used to meet Tri-Star’s share of additional shareholder investment into Strategic & Precious Metal Processing (SPMP), an Omani company in which Tri-Star has a 40% equity interest. SPMP is constructing an antimony and gold processing facility in the Sohar Freezone of the Sultanate of Oman.

READ: Tri-Star Resources advances as environment permit is awarded​

Tri-Star said SPMP had recently achieved a number of critical milestones in the construction of the project.

Plant construction is now 97% complete, main grid power is connected and cold commissioning is well underway. Hot commissioning will commence later this month leading to the production of antimony trioxide followed by the production of antimony and gold ingot later this summer.

Another key milestone achieved in the last quarter was the development of valuable relationships with international feedstock and other raw material suppliers, Tri-Star said.

SPMP is expecting to receive initial revenues from the sale of products produced in the commissioning phase during the next quarter with its first significant revenues expected to arise in the final quarter of the year as production is ramped up; however, during the commissioning phase, the project will require further short-term operational and working capital financing and it is seeking around US$30mln from its shareholders to cover this, hence Tri-Star’s plans to raise fresh fund.

The balance of the net proceeds from the placing will be applied to pay down part of the secured loan notes held by various funds operated by Odey Asset Management.

Shares in Tri-Star currently trade at around 41p.  

View full TSTR profile View Profile

Tri-Star Resources Timeline

Video
September 16 2015

Related Articles

Picture of timetable for Wolfsberg project
March 12 2018
Chairman Tony Sage says the key number in the prefeasibility study will be the net present value.
project area
July 12 2018
The Gabanintha Vanadium Project is one of the highest-grade vanadium deposits in the world.
coal
September 04 2018
Regency’s partner LHC (Legacy Hill Coal) is the operator of MET and has a 53% stake, with the UK business owning the rest

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use