Disgraced financier Crispin Odey has placed a gold investment firm he controlled into liquidation, following serious concerns about the viability of its flagship project in Oman.
Tri-Star Resources, which held a stake in an antimony and gold production facility in Oman, is now being wound up. The decision was made by Odey, who was the sole director and controlling shareholder through a series of closely-held entities.
The End for Tri-Star Resources
In a corporate filing, Odey stated the move was due to "significant and ongoing losses" at the plant and "serious concerns over the commercial viability" of the operation. He also cited the company's inability to service its debt obligations.
"Given the significant and ongoing losses being incurred by the plant and serious concerns over the commercial viability of the operation; and the ability of the company to service and repay its existing debt obligations to loan note holders; the director has taken the decision to discontinue capital commitments to the SPMP project and appoint a liquidator to wind-up the company," Odey said.
He expressed regret and thanked partners, management, and shareholders for their dedication. Company filings reveal that Tri-Star had £2.3m in outstanding loans prior to liquidation, with the majority owed to companies belonging to Odey himself.
A Gold Project Loses Its Shine
Tri-Star's troubles stem from its investment in the SPMP facility in Oman. The company was once listed on London's AIM market and invested in SPMP back in 2014 through a joint venture with The Oman Investment Fund, a sovereign wealth fund, and Dubai-based Dutco.
Initial expectations were high, with the plant forecast to generate around $245m (£185m) in annual turnover once fully operational. However, the project entered a "frustrating period" marred by production setbacks.
The precious metals processor later revealed that the funding needed to scale up production would have to be "increased enormously." Tri-Star refused to invest further and instructed SPMP to seek debt finance instead.
This led to a settlement that diluted Tri-Star's stake in the venture from 40 per cent to just 16 per cent. Following this imbroglio, the company's shares tumbled, and it delisted from AIM in late 2020. Odey, then the majority shareholder, became the sole director. At the time of delisting, the company had a market capitalisation of approximately £30m.
Broken Promises and Legal Battles
Despite the company's delisting, Odey appeared optimistic about its future as recently as late 2023. He wrote that production at SPMP was expected to reach 40 per cent capacity by the fourth quarter and could hit 70 per cent in 2024.
However, this optimism proved unfounded. Multiple Tri-Star shareholders have told City AM that they had not received any communication from Odey in over a year.
The liquidation comes as Odey prepares for a separate, high-stakes legal battle. He is suing the Financial Times for libel over its reporting on allegations of sexual misconduct made against him by 20 women, including former employees. Odey denies these allegations.
In a related development, Odey is also involved in a legal case concerning AIM-listed tech firm Big Technologies. The case alleges that founder Sara Murray forged correspondence with Odey, a major investor, prior to its London float. Murray denies the allegations, and there is no suggestion of any misconduct by Odey in this matter.
This series of events follows the Financial Conduct Authority's decision to ban Odey as a corporate director in March.
