LONDON (Alliance News) - Tri-Star Resources PLC shares rose Wednesday as it said it had agreed revisions to its loan note instrument with Odey European Inc.
The company, which is developing an antimoney processing facility in Oman, has a loan note facility with Odey. The outstanding principal and accrued interest on the notes stood at GBP7.4 million at the end of May.
It said that the rate of interest accruing on the loan notes will remain unchanged at a non-cash coupon of 15% a year calculated on a daily basis and compunding every six months. However, the conversion price will now be fixed at 0.2 pence a share for the remainder of the term of the notes until June 2018. Under the revision, the loan notes will also now convert into equity at 0.2 pence a share when they mature in June 2018 if they haven't been converted before then, removing the previous option that Odey had to have the notes redeemed in cash in full.
Odey retains the option to serve a conversion notice at any time up to maturity, and if the conversion would result in Odey holding more than 29.9% of TriStar's enlarged voting share capital, Odey will have the choice of either continuing to hold the notes that would take its stake above 29.9% or to have those notes redeemed in cash.
The revisions are conditional on Strategic & Precious Metals Processing LLC achieving financial close on the Oman Antimony Roaster project, a 20,000 tonne per year antimony roasting facility being developed in Sohar, Oman. Tri-Star owns 40% of trategic & Precious Metals Processing.
Tri-Star Resources shares were up 9.0% at 0.169 pence Wednesday morning, one of the best-performing stocks in the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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