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Stratex to take steps to release funds from Altintepe

Despite the recent unrest in Turkey, Altintepe is producing but Stratex has yet to receive its share of revenues from the mining operations
Stratex is in dispute with Bahar
Stratex said it would be taking appropriate action to enforce its contractual rights.

Stratex International plc (LON:STI) revealed it is to take steps to start receiving its share of revenue from the Altintepe gold mine in Turkey.

The good news is that things seem to have settled down in Turkey after a period of turmoil, and the mine has been churning out precious metal.

Production for 2016 has been estimated 35,800 ounces (oz) gold and 4,600 oz silver, generating total revenues for the mine in excess of US$45mln, Stratex said in an operational update.

Stratex should receive 20% of net cash generated by the project until such time as the capital invested by its partner, the Turkish conglomerate Bahar Madencilik, has been repaid, after which its share will rise to 45%.

As of yet, and as previously reported, Stratex has yet to receive a cash distribution from Bahar, which Stratex believes is in contravention of its contract with Bahar.

Stratex said it would be taking appropriate action to enforce its contractual rights.

“The Altıntepe gold mine represents a highly attractive project and has demonstrated over 2016 that it is a robust, low-cost gold operation and we are confident that it will generate significant cash flow over its operating life.  Management will remain in communication with our partners and will be taking all necessary action to ensure we obtain our net cash distribution under the agreement,” revealed Stratex’s chief executive officer, Marcus Engelbrecht.

Elsewhere, at the Anbat project in Egypt, where Stratex has a 30.4% stake, some excellent results were published from two drill holes.

Additionally, field work has defined a further new zone of alteration 500 metres to the east of the TDAND-001 drill hole.

The entire area will be re-mapped and historic drill core will be re-logged to assist with future drill targeting.

The Thani Stratex joint venture has also announced the commencement of a 2,000 metre diamond drill programme at Stratex's former Pandora epithermal gold project in Djibouti.

The aim of the drilling is to confirm the vertical depth continuity of gold mineralisation at the Pandora South and Pandora Central zones.

“The extremely positive results from the drilling programmes at Thani Stratex's exploration projects in both Egypt and Djibouti are very encouraging and confirm our confidence in the prospectivity of both the districts and the projects,” CEO Marcus Engelbrecht said.

At the Dalfin exploration project, where Stratex’s stake is 85%, the company is currently renegotiating its agreement with its Senegalese partners, EMC.

Stratex is currently reviewing all data ahead of further exploration.


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