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Stratex International results chart a period of transformation for the gold exploration group

Published: 07:39 03 Aug 2017 BST

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The company's focus is turning from Turkey to Brazil

Stratex International PLC’s (LON:STI) interim results statement charts a period of transformation for the AIM-quoted mine developer – one in which it sold its cornerstone asset and agreed to acquire a Brazil-focused business with a large gold resource.

The disposal of Stratex’s 45% share of the Altıntepe Gold Mine, in Turkey, netted £6mln and resulted in a book gain of £2.9mln. It also left the business with just under £6.1mln on the balance sheet.

In May it said it planned to buy Crusader Resources in an all share deal worth £31mln.

READ: Stratex agrees sale of Brazil iron ore mine

The gems in Crusader’s portfolio are Borborema and Juruena, which between them host a JORC-compliant 2.7mln-ounce gold resource.

Two other investments ...

The company has two more arm’s length investments – Egypt and Djibouti-focused Thani Stratex Resources and Goldstone Resources, which owns the Homase-Akrokerri project in Ghana. The shareholdings are respectively 30.5% and 23.36%. Both are gold exploration companies.

Turning to the financials, Stratex made a pre-tax profit of £880,216 for the six months ended June 30, compared with a £1.98mln loss for the same period a year earlier.

"There has been significant activity across the reporting period with the sale of our Altıntepe investment in Turkey and the opportunity to acquire two significant exploration and development assets as part of the proposed Crusader Resources transaction,” said chief executive Marcus Engelbrecht.

“I expect further positive news from our exploration portfolio and the potential to acquire near development assets will bring us closer to realising our strategy of building a gold producing company."

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