Tri-Star Resources rockets after part-owned SPMP inks supply deal

Tri-Star Resources' share price rocketed after partly-owned Strategic & Precious Metals Processing inked an antimony and antimony gold concentrate supply agreement with Traxys Europe.

Traxys agreed to supply SPMP's antimony roaster in Oman, which was under construction, for an initial term of five years, with concentrates and direct shipping ores.

Emin Eyi, CEO of SPMP and Deputy Chairman of Tri-Star, said the strategic alliance with Tri-Star would further de-risk its Oman project.

"Work has already commenced with the Traxys team in identifying and approaching major suppliers of antimony and antimony gold concentrates at a time when some 50% of China’s antimony smelters are shuttered pending environmental concerns," he added.

The cost to SPMP would be based on the purchase contract price paid by Traxys plus an agreed sourcing fee and transactional expenses, the company said in a statement.

AIM-listed Tri-Star owned a 40% stake in SPMP.

As of 1548 BST shares in Tri-Star were higher by 32.14% to 0.18p, having hit an intra-session high of 0.31p, giving the Cheapside-based company a market capitalisation of £15.25m.