Oman Investment Fund Signs MoU to Back Antimony Roasting Facility
On October 9, 2013, London-based Tri-Star Resources signed a non-binding Memorandum of Understanding (MoU) with the Oman Investment Fund and Castell Investments Limited, a subsidiary of Dubai Transport Company, to create a joint venture company to build and operate an antimony roasting facility in Oman. Publicly-traded Tri-Star Resources is an integrated antimony development company.
The joint venture company is to be called Strategic and Precious Metals Processing LLC and will be incorporated in the Sohar Free Trade Zone in Oman. The facility is estimated to cost US$ 60 million. Final binding joint venture agreements are expected to be completed in November 2013.
Under the current MoU, the ownership of the Strategic and Precious Metals Processing LLC will be:
- 40% – Tri-Star Resources
- 40% – Oman Investment Fund
- 20% – Castell Investments Ltd.
Funding for the roasting project will include both debt and equity financing. US$ 30 million in project financing will come from banks. Other amounts include a US$ 10 million mezzanine loan from the Oman Investment Fund with a balance of US$ 20 million in equity being paid in pro rata to their ownership interests.
In 2011, Tri-Star Resources formed a joint venture with the Union International Holdings Group to design and build a 20,000 tonnes per annum antimony facility in the Emirate of Ras Al Khaimah.
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