LONDON (Alliance News) - Tri-Star Resources PLC on Wednesday said its funding package and investment in the company developing the Oman antimony roaster project have both reached financial close and construction work can now begin.
"I am delighted to announce that we have delivered on our commitment to the Oman antimony roaster (project) and with committed funds of USD70 million now in place, plant construction can commence," said Managing Director Emin Eyi.
The financial close of the deal follows on from the company's announcement on Monday, when the developer of the project, Strategic & Precious Metals Processing LLC, in which Tri-Star holds a 40% stake, entered into a definitive agreement for USD40.0 million in debt funding to back work at the Oman antimony roaster project.
That funding is being provided by Oman-based Bank Nizwa SAOG.
Total funding for the project is now confirmed at USD70.0 million, Tri-Star said, with the USD40.0 million from Bank Nizwa added to the USD15.0 million the joint venture partners will inject into the project and a USD15.0 million mezzanine debt facility.
Strategic & Precious will now proceed to build a 20,000 tonne per year antimony processing facility at the project, located in the Sultanate of Oman.
Moving forward, Tri-Star said commissioning of the plant is expected during 2016 and commercial production will begin in 2017. The company also said it was "confident" that Strategic & Precious Metals will build a second processing facility at the project for refractory gold ores.
"This is a transformational transaction for Tri-Star, following many years of development, and the project has substantial technical and economic potential. It provides Tri-Star with direct exposure to an upstream conversion business with the prospects of healthy margins and cash flow once in production," said Eyi.
"We are confident that Strategic & Precious will also proceed to build a second processing facility for refractory gold ores, hence becoming a leading converter of difficult concentrates at a time when the industry requires more environmentally friendly and economical routes to metal," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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