Tri-Star surges as Oman antimony project reaches financial close

16th Sep 2015 09:47

(ShareCast News) - Shares in Tri-Star Resources jumped almost 20% on Wednesday, after it delivered positive updates on the Oman antimony roaster project.The London-listed company said its funding package and investment in Strategic & Precious Metals Processing , the group developing the project, had reached financial close and construction was set to get underway.On Monday, the group said Strategic, in which it owns a 40% stake, had entered a definitive agreement for $40m in debt funding, provided by Oman-based Bank Nizwa SAOG, to finance the Oman antimony roaster project.The funding from Nizwa will be added to the $15m the joint venture partners will invest in the project and a $15m mezzanine debt facility.In a statement released on Wednesday, the company said Strategic & Precious will now build a 20,000 tonne per year antimony processing facility."This is a transformational transaction for Tri-Star, following many years of development, and the project has substantial technical and economic potential," said group managing director Emin Eyi."It provides Tri-Star with direct exposure to an upstream conversion business with the prospects of healthy margins and cash flow once in production."Tri-Star shares were up 21.20% to 0.152p at 1000 BST on Wednesday.