Shares in Tri-Star Resources (LON:TSTR) plunged on Thursday, after the company announced an open offer to raise £4.4 million.
The group said the proceeds from the open offer will go towards providing funds for the part pre-payment of $6.0 million of loan notes issued to Obey Funds in November and £250,000 for ‘general corporate purposes’.
Additionally, Tri-Star said that construction of the Oman antimony roaster project went ahead, however, production of first metal is now expected for the second quarter of 2018, as opposed to the first quarter.
Guy Eastaugh, Chief Executive Officer of Tri-Star, said: “We are pleased to be announcing this Open Offer to shareholders which will enable the Company to significantly de-gear its balance sheet, putting the Company on a more stable financial footing as we move ahead into 2018.”
Earlier in the week the company also announced the resignation of their deputy chairman, Emin Eyi, with immediate effect.
Tri-Star Resources a technology and mineral processing company, with headquarters in London. The company is listed on the AIM-market division of the London Stock Exchange.
Shares fell more than 50 percent amid the news. Tri-Star shares are currently down 36.8 percent as of 14.15PM (GMT).