Last checked at 12 Oct 2010 10:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
12 October 2010
Stratex International Plc
Joint Venture with Thani Ashanti on Afar Epithermal Project and Private Placement at Premium
Stratex International Plc ('Stratex' or 'the Company') has signed a binding Heads of Agreement with Thani Ashanti, an AngloGold Ashanti Limited joint venture company ('the Agreement'), to fast-track development of the Company's 2,780 sq km land position in the prospective Afar Depression of eastern Ethiopia and Djibouti. Additionally, the Company has completed a private placement by Thani Ashanti of US$500,000 into Stratex ('the Placing').
Highlights
·; Placement by Thani Ashanti of US$500,000 into Stratex at 30% premium to 20-day moving average share price prior to date of signing the Agreement
·; Thani Ashanti can earn 51% of the Afar Project by spending US$3 million on exploration and development over two years
·; First year commitment from Thani Ashanti of US$1 million, which will include a 3,000 metre drill programme to fast-track exploration of the Megenta gold discovery, a licence area of the Afar Project
·; Thani Ashanti can spend an additional US$4 million on any one licence of the Afar Project to acquire further 19%
·; All Ethiopian and Djibouti assets to come under the ownership of Stratex's wholly-owned subsidiary company, Stratex East Africa Ltd ('SEA')
·; Thani Ashanti to earn 5% stake in SEA further to spending half of its US$1 million first year commitment
·; Heads of Agreement subject to all required regulatory approvals including without limitation, the South African Reserve Bank
Stratex Executive Chairman David Hall said, "We are delighted that Thani Ashanti is becoming a shareholder in Stratex and, more importantly, a cornerstone investor in SEA, which will hold the assets in our expanding Ethiopian and Djibouti portfolio. This deal signals the first major gold mining company moving into Ethiopia and the Republic of Djibouti and highly endorses the exciting gold potential of the Afar Depression. Our Megenta hot spring epithermal gold discovery in eastern Ethiopia is an exciting drill target with excellent surface gold indications and high grades within multi-phase hydrothermal breccias, which will be drill tested under this Agreement; the progress of which I look forward to communicating to our shareholders in the coming months.
"We will, in addition, aggressively explore and evaluate the multiple target areas that we have now secured under licence in the Afar Depression within both Ethiopia and Djibouti, ensuring that we realise maximum value for Stratex, its shareholders and Thani Ashanti."
Detailed Information
Stratex and Thani Ashanti have signed a binding Heads of Agreement with respect to five licence blocks that comprise the Tendaho Exclusive Exploration Licence ('EEL') in the Afar Depression of Ethiopia and six EEL's in the Republic of Djibouti (collectively 'the Afar Project').
Under the terms of the Agreement, Thani Ashanti can earn 51% of the Afar Project by expending a total of US$3 million on exploration and development over two years. Thani Ashanti is committed to expending US$1 million in the first twelve months and this will include a 3,000 metre drill programme to test the Megenta prospect in Ethiopia. Subsequently Thani Ashanti must expend a further US$2 million in the second year to earn 51% in the project.
Thani Ashanti may then earn an additional 19% (for a total of 70%) in any one EEL by further expenditure of US$4 million within four years on that EEL from the start of the Agreement.
Thani Ashanti is also investing US$500,000 into Stratex via a private placement at a 30% premium to the 20-day moving average share price prior to the date of signing. Stratex will use the proceeds of the Placing to develop Stratex's Ethiopian and Djibouti portfolio not included in the Afar Project; this wider portfolio includes the Company's Shehagne, Berahale, and Tigray EEL's in northern Ethiopia and the Gedemsa EEL in the Central Ethiopian Rift.
SEA, presently owned 100% by Stratex, will hold all Stratex's Ethiopian and Djibouti assets, including the Afar Project, Shehagne, and Berahale, the Tigray and Gedemsa EEL's and any new Stratex projects started in that region. Thani Ashanti will acquire a 5% of SEA (and thereby 5% of all Stratex's current East African interests) once it has expended 50% of its first year commitment of US$1 million.
The Heads of Agreement is subject to the satisfaction of certain conditions precedent including the approval of the Reserve Bank of South Africa, relevant bodies under the AIM Rules for Companies governing companies quoted on the AIM market of the London Stock Exchange and all relevant government and regulatory agencies, including without limitation in each of Ethiopia and Djibouti as required.
Megenta Project
Stratex has undertaken detailed geological and structural mapping, along with channel-chip rock sampling at its wholly-owned Megenta hot-spring gold discovery in the Afar Depression region of Ethiopia. Megenta is currently the most advanced exploration target within the Afar Project. Sampling completed to date has focused on silica structures, specifically on zones containing chalcedonic ribs and veinlets, which potentially indicate the tops of epithermal gold veins that have significant vertical extensions at depth. The 'Hyena Zone' yielded a highest surface value of 16.75 g/t Au (with 8.8 g/t Ag) from a prominent 0.5 m-wide silica rib. The Hyena Zone appears to be related to intersecting structures defining an area of maximum dilation, and hence fluid circulation, which is a common gold focus within epithermal systems.
The 500 m long 'Gazelle Zone', is located 500 m to the north-east of the Hyena Zone and also contains significant values including 2.46 m grading 2.29 g/t Au.
Overall chalcedonic ribs are developed over some six square kilometres providing multiple targets for gold mineralisation.
Many similarities exist between the Midas, Hycroft and Wind Mountain mines of the Great Basin in Nevada and the mineralisation being identified by Stratex in the Afar Depression and the East African Rift Valley further to the south. Common to all project areas is the strong structural control, proximity to hot-spring activity, and a typical geochemical association of gold with arsenic, mercury and antimony. Furthermore, fluid boiling textures associated with white banded chalcedony, akin to those of Midas, have been observed at Megenta. These are key indicators of potential high-grade gold and silver precipitation.
The low-sulphidation deposits of Nevada are reasonably distinct but share many common attributes to the Megenta discovery in the Afar Depression. The key point of the Nevada deposits is their tendency to cluster along key controlling structures. With a greater level of understanding of the Megenta structural framework it is highly probable that already-identified alteration and hot-spring occurrences associated with the Megenta faults may lead to further discoveries throughout the Afar Depression and the East African Rift Valley.
Thani Ashanti
Thani Ashanti is a Strategic Alliance between AngloGold Ashanti Limited and Thani Investments LLC, a privately-held company based in Dubai, United Arab Emirates. The Alliance is targeting the Middle East and North Africa region and is active in Egypt and Eritrea
For more information on the Afar Project, please visit: http://www.stratexplc.com/operations/afardepression.asp
Sampling, assaying, and QA/QC
Stratex's sampling of outcropping rocks conforms to industry-wide good practice, with chain of custody being observed for all samples. Analysis is undertaken by ALS Chemex at its laboratories in Johannesburg, South Africa and the Company maintains QA/QC on all analytical work via the use of certified reference materials, field duplicates, and blank samples in addition to monitoring of internal laboratory check-analyses.
Executive Chairman David J. Hall, Fellow SEG and EuroGeol is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
* * ENDS * *
For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:
| Bob Foster | CEO, Stratex International Plc | Tel: +44 (0) 20 7830 9650 |
| Claire Palmer | Corporate Geologist, Stratex International Plc | Tel: +44 (0) 20 7830 9650 |
| Tim Metcalfe/ Martin Davison | Westhouse Securities Ltd, Nomad and Broker
| Tel: +44 (0) 20 7601 6100 |
| Felicity Edwards/ Elisabeth Cowell | St Brides Media & Finance Ltd
| Tel: +44 (0) 20 7236 1177 |
Notes to editors:
Stratex International Plc is an AIM-quoted exploration and development company focussing on gold and base metal opportunities in Turkey, Ethiopia and Djibouti.
Turkey Portfolio
In Turkey, Stratex's prime objective is to move into gold production through its partnership with its Turkish partner NTF, with initial production targeted at its Inlice project by the end 2011 and at Altıntepe by end 2012/early 2013. The Company also remains focussed on discovering and developing new projects through low-cost exploration, adding maximum value prior to optioning/joint venturing or selling on to a dedicated mining company.
·; Total resources stand at 1.17 million oz of gold (combined oxide and sulphide gold) and approximately 3.2 million oz of silver
·; Partnership with NTF, a technically capable and well-financed Turkish company, to rapidly develop the 542,318 oz oxide resources present at the Inlice and Altıntepe projects
·; An option/joint venture agreement with Centerra Exploration B.V., a wholly owned subsidiary of Centerra Gold Inc., to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia
·; An option/joint venture agreement over the Hasancelebi project, a high-sulphidation gold project in central Turkey with Teck Madencilik Sanayi Ticaret A.S., a Turkish subsidiary of Teck Resources Limited of Canada, a major shareholder in Stratex
Stratex East Africa Ltd ('SEA') - Ethiopia and Djibouti Portfolio
·; 5.45% shareholding in PLUS-quoted exploration company Sheba Exploration (UK) plc ('Sheba')
·; Ajoint venture with Sheba to (i) earn-in to an initial 60% of the prospective 37 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis
·; Berahale and Gademsa EEL's cover a combined area of 1,225 sq km in northern and central Ethiopia respectively and are prospective for gold and base metals
·; 2,780 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Depression of eastern Ethiopia and Djibouti, collectively named as the Afar Project