Tri-Star Resources PLC, the London-based mining company, is in the midst of raising funds to develop an antimony-roasting facility in Oman; the company said earlier this week that it has conditionally raised nearly $5.5 million toward that goal.
Antimony is a rare metallic mineral element commonly used in batteries, low-friction metals, type metal and cable sheathing, among other products. The element is consistently at or near the top of the British Geological Survey’s Risk List, which ranks elements with industrial uses by their difficulty to find, procure and produce.
On Monday, Tri-Star placed 1.27 billion new shares on the market to raise the capital needed for the antimony roaster. The mass of new offerings pushed Tri-Star shares down 7.4 percent to 0.125 pence.
On top of issuing new shares, Tri-Star has conditionally agreed to issue £2 million of secured convertible bonds due in 2018 to Odey European Inc., which already provides the company with a loan note facility.
“I am delighted to be able to announce this important fundraising by Tri-Star, which will enable the company to finance its 40 percent equity share in the Oman Antimony Roaster joint venture,” Tri-Star Managing Director Emin Eyi said. “The company will continue to work with its joint venture partners to bring this exciting project through construction and into production to become one of the first sizeable Western World antimony roasters designed to be fully compliant with modern environmental legislation.”
The actions will have to be approved by shareholders at the company’s general meeting to be held on August 5.
