Trecora Resources Announces AMAK Share Issuance
AMAK Mine Operations Remain on Schedule for Fourth Quarter 2016 Re-start; Trecora Does Not Participate in Offering, Reducing Ownership to 33.4%
SUGAR LAND, Texas, July 20, 2016 /PRNewswire/ -- Trecora Resources (NYSE: TREC), a leading provider of high purity specialty hydrocarbons and waxes, announced that Al Masane Al Kobra Mining Company ("AMAK") issued four million shares to provide additional funds for ongoing exploration work and mine start-up activities. Arab Mining Co. ("Armico") purchased 3.75 million shares at 20 Saudi Riyals per share (US$5.33 per share) and the remaining 250,000 shares are Treasury stock for future use as employee incentives. Armico now owns approximately 19.5% of AMAK.
Trecora Resources did not participate in the offering, thereby reducing its ownership percentage in AMAK to 33.4% from 35.3%. As of this share issuance price, Trecora's 26.1 million shares are valued at approximately $139.0 million.
Simon Upfill-Brown, Trecora's President and Chief Executive Officer, commented, "We are pleased that AMAK's exploration and refurbishment activities are progressing as planned, and that the additional capital came from a strong, current investor with in-depth knowledge of the region's economy. We believe this funding will allow AMAK to fully leverage its more efficient production operations and the additional mining and exploration territory acquired last year."
In November 2015 Trecora announced the temporary shutdown of AMAK's copper and zinc mine and the termination of the contract with the mine operator. Additionally, AMAK received formal approval for new licenses that included an additional 151 square kilometers (km2) of territory contiguous to AMAK's prior 44 km2 mine. The additional territory comprised the Guyan and Qatan exploration licenses covering 151 km2, and within the Guyan exploration license, a 10 km2 mining lease which has potential for significant gold recovery. Earlier this year, Trecora reported that AMAK had initiated extensive renovation work at the facility to improve production efficiencies and precious metal recovery. The renovation work, including installation of new equipment, remains on schedule to be finished in the fourth quarter of 2016.
About Trecora Resources (TREC)
TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high purity hydrocarbons and other petrochemical manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
Statements in this press release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon our belief, as well as, assumptions made by and information currently available to us. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Trecora Resources' filings with the Securities and Exchange Commission, including Trecora Resources' Annual Report on Form 10-K for the year ended December 31, 2015, and the Company's subsequent Quarterly Reports on Form 10-Q. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release.
Investor Relations Contact:
The Piacente Group
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SOURCE Trecora Resources