Last checked at 9 Oct 2013 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
Stratex International Plc
('Stratex' or 'The Company')
Strategic investment in Tembo Gold Corporation
Stratex International Plc, the AIM-quoted exploration and development company focussed on gold and base metals in Turkey, East Africa and West Africa, is pleased to announce it has reached agreement with Tembo Gold Corporation (TSXV: TEM; "Tembo") to participate in a strategic financing of up to C$8.657 million to continue the exploration and evaluation of its Tembo gold property in the Lake Victoria Gold Belt of Tanzania.
Highlights
· Stratex to participate in the placement as part of an Investor Group with the New Africa Mining Fund II and Concept Capital Management Ltd
· Tembo management to be realigned with the Investor Group providing three out of five directors, including Bob Foster the CEO of Stratex
· Stratex to invest up to C$1.657 million of the placement for an initial holding of 10.3% of Tembo which could increase to 18.7% on exercise of warrants
· The Investor Group, through a voting pool arrangement, could control up to 60.5% of Tembo on a fully diluted basis
· The Tembo gold property consists of 100 km2 of highly prospective licences and applications in Tanzania, adjacent to Barrick's Bulyanhulu Mine
· Funds to be focussed on resource definition over the next two field seasons
· Closing is subject to a number of conditions, including a minimum subscription of C$7.0 million
Commenting on the proposed investment Stratex Chairman Christopher Hall said "Stratex is very pleased to announce this exciting strategic investment in conjunction with the New Africa Mining Fund II and Concept Capital Management. The Tembo property is located in the highly prospective Lake Victoria Gold Belt of Tanzania to the northwest of, and next to, the Bulyanhulu Mine. Tembo has built on extensive historic work and artisanal activity with encouraging results from over 35,000m of drilling on half a dozen targets, however, it has yet to report a resource. Stratex and its partners believe they can guide, support and provide the finance for management to focus on priority targets, with infill and step-out drilling, before moving to resource estimation. In line with our restated strategy, we see Tembo as a "tipping point" opportunity, where tightly focussed exploration can accelerate the exploration process. Negotiating and structuring this transaction has been a protracted process and there are still some hurdles to be overcome. However, there has been an immense amount of goodwill on all sides as the financing is clearly in the interests of Tembo and all its stakeholders. I look forward to updating shareholders when all conditions have been met, closing has occurred and work on the ground can begin."
Full details are set out in the Tembo press release that can be accessed via the following link http://web.tmxmoney.com/article.php?newsid=63128740&qm_symbol=TEM.
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For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:
Stratex International Plc | Tel: +44 (0)20 7830 9650 |
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Bob Foster / Christopher Hall / Claire Bay
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Grant Thornton UK LLP | Tel: +44 (0)20 7383 5100 |
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Philip Secrett / Melanie Frean / Jen Clarke
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Northland Capital Partners Limited | Tel: +44 (0)20 7796 8800 |
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Gavin Burnell / Luke Cairns / Alice Lane /John Howes
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SP Angel Corporate Finance LLP | Tel: +44 (0)20 3463 2260 |
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Ewan Leggat / Tercel Moore
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Yellow Jersey PR Limited | Tel: +44 (0)20 3664 4087 |
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Dominic Barretto / Philip Ranger / Anna Legge |
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Notes to editors:
Stratex International is a well-funded AIM-quoted exploration and development company focussed on gold and high-value base metals in Turkey, East Africa and West Africa. Since listing on AIM in 2006, Stratex has had an impressive track record of successful exploration supported by joint-venture partnerships, both with major international mining companies and local companies to maximise the potential of its discoveries.
In December 2012 the Company announced the sale of its 30% interest in the Öksüt gold project for cash of 20 times its original US$1 million investment and retained a royalty of 1% up to a maximum additional value of US$20 million.
To date Stratex has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver, as well as 186,000 tonnes of copper. The Company has a robust cash balance and is therefore well-placed to advance its existing exploration programmes and is also actively seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources, particularly in East Africa and West Africa.