Last checked at 25 Feb 2016 07:00
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
Stratex International Plc
("Stratex" or "the Company")
Thani Stratex
Secures US$1.25 million of New Funding
Stratex International Plc, the AIM-quoted exploration and development company focused on gold and base metals in Turkey, East Africa and West Africa, is pleased to announce that Thani Stratex Resources Limited ("Thani Stratex" or "TSRL"), in which the Company has previously invested US$1 million for a 40% interest, has secured US$1.25 million of new funding (net of fees) by way of a non-repayable and interest-free convertible loan from NurtureEx B. V. (''NurtureEx''). The new funds will allow TSRL to proceed with an initial drill programme on its licence areas in the Republic of Djibouti.
NurtureEx's investment will cover 4,000 metres of drilling which is expected to commence in the second quarter of 2016. The drilling will initially focus on the Pandora vein system ("Pandora"). Drilling will also target the new Asaleyta prospect located 16 km to the north of Pandora, where recent work has defined disseminated and vein-hosted gold mineralization in rhyolite domes.
NurtureEx has the right to fund a further US$1.25 million (net of fees) for an additional 4,000 metre drilling programme and, should it take up this right, its total investment would convert into a 50% interest in TSRL's wholly-owned local entity, Thani Stratex Djibouti, that holds the concessions. However, if NurtureEx decides not to take up its right to provide further funding it will have the option to convert its initial investment into TSRL shares at US$2 per share.
As part of the funding exercise, the Company and Thani have both agreed to capitalise amounts owed to them by TSRL. As a result, the Company's interest has now been reduced from 40% to 38.4%. Should NurtureEx decide not to take up its right for further funding, and instead convert its initial investment into TSRL shares, Stratex's holding will be further diluted to 34.5%.
Christopher Hall, Stratex Chairman and Stratex representative on the TSRL Board commented: "We are delighted that TSRL has secured this investment which highlights the quality of the Djibouti targets, even in this depressed market. New gold districts, not just new gold projects, are required for the future of the mining industry and TSRL is at the forefront of this exploration with its strategic land package in the Afar Epithermal Province. Success in Djibouti will transform the upside potential for TSRL in the region, where it retains full control of the rest of its highly prospective licences. We look forward to updating the market on its progress in due course."
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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 |
Bob Foster / Christopher Hall / Claire Bay
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Grant Thornton UK LLP | Tel: +44 (0)20 7383 5100 |
Philip Secrett / Jen Clarke / Daniel Bush
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Northland Capital Partners Limited | Tel: +44 (0)20 7382 1100 |
Gerry Beaney / David Hignell (Corporate Finance) Abigail Wayne / John Howes (Broking) | |
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Yellow Jersey PR Limited | Tel: +44 (0)7768 537739 |
Dominic Barretto / Harriet Jackson | |
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver, as well as 186,000 tonnes of copper. The Company achieved first gold pour at its 45%-owned Altıntepe gold mine in Turkey in November 2015 and recently sold its 1% Net Smelter Returns royalty in the Öksüt gold project for US$4.5 million. It also owns 30% of a copper-gold project at feasibility stage. With its current cash position, projected cash returns and no debt, the Company is 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.