SPMP secures short-term funding for Sohar project, mulls stock market listing

Muscat - 

Tri-Star Resources, the UK-based mining and minerals processing company, on Wednesday announced that a significant short-term funding has been agreed for Strategic & Precious Metals Processing LLC (SPMP) which owns the antimony-gold processing facility in Sohar.

Tri-Star holds a 40 per cent shareholding in SPMP, while Oman Investment Fund Holding (OIF) and DNR Industries Ltd own 40 per cent and 20 per cent stakes in the project, respectively.

The shareholders of SPMP have also agreed to explore a stock exchange listing of SPMP, provisionally to take place once commercial production has been achieved, Tri-Star said in a statement posted on its website.

‘Following discussions between shareholders in the project, a significant funding solution has been agreed primarily to cover short term working capital and capital expenditure requirements as the SPMP facility nears first revenue and a longer-term financing solution is finalised,’ Tri-Star said.

As part of this agreement, Tri-Star said it will maintain its 40 per cent shareholding in SPMP and is not required to inject any new funds into the project. ‘Under the agreement entered into between SPMP and Tri-Star together with OIF and DNR, OIF and DNR have agreed to provide funding to SPMP in the form of a new mezzanine loan of US$35mn on terms substantially similar to SPMP’s existing mezzanine loan.’

Tri-Star said the new mezzanine loan will not be convertible into equity of SPMP. No new equity will be issued as part of the new mezzanine loan arrangements and the shareholders’ equity interests in SPMP will remain OIF (40 per cent), Tri-Star (40 per cent) and DNR (20 per cent), the company said.

“The prospective listing of SPMP in its entirety has always made sense. SPMP will now be appointing independent advisors to look at listing feasibility, together with the optimal structure and timing for the company and its shareholders,” said Karen O’Mahony, acting chief executive officer of Tri-Star

 

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