Bank Nizwa to fund $40m for Tri-Star's Oman antimony roaster project
August 24, 2015 | 7:18 PM
by Times News Service
Shareholders of SPMP have also reached agreement as to the equity funding structure of SPMP. - Times file picture

MUSCAT: Tri-Star on Monday said Strategic & Precious Metals Processing has entered into definitive agreement for $40 million debt facility with Bank Nizwa for funding the Oman Antimony roaster project.

Strategic and Precious Metals Processing (SPMP) is developing a 20,000 tonne per annum antimony processing facility in Oman, the Oman Antimony Roaster project. The company has a 40 per cent equity interest in SPMP, said a press release. The shareholders of SPMP have also reached agreement as to the equity funding structure of SPMP.

Oman Antimony roaster project funding is confirmed as $70 million. Of this, $15 million is equity being provided by the joint venture partners in proportion to their respective individual interests. In accordance with the terms of the shareholders agreement, the company’s share, of $6 million, will be put aside into a designated account on financial close. A mezzanine loan facility of $15 million and senior debt of the Omani equivalent of $40 million.

In relation to the sale of certain of the company’s intellectual property rights on financial close Tri-Star is to receive the first two tranches of consideration due under the Assignment Agreement dated June 5, 2015. The only remaining condition being the funding condition which will be satisfied on the transfer of equity funds to SPMP.

The consideration for the sale of IPR is up to $6 million in cash. The first two tranches, totalling $4 million are to be received by Tri-Star on financial close and will be offset against the company’s equity commitment of $6 million.A $2 million tranche remains payable to Tri-Star on the commissioning of an antimony roasting pilot plant, part of the overall OAR and will be used by Tri-Star for general corporate purposes.

“This is an important development for Tri-Star and its joint venture partners. Financial close of the Roaster Project will enable SPMP to move on to the detailed engineering and technical work required in order to commence construction. Securing the debt facility also acknowledges all SPMP’s stakeholders’ confidence in Tri-Star’s clean roasting technology that Tri-Star has brought to Oman. We expect to be commissioning the plant during the course of 2016, with commercial production by 2017,” said EminEyi, Managing Director of Tri-Star.

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