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Stratex extends deadline for completion of Crusader acquisition

The deadline by which the deal must be completed has been pushed back until 28 February
Englebrecht thinks Crusader's Borborema gold asset could generate around US$30mln in cash per year

Stratex International plc (LON:STI) has extended the deadline for completing its controversial takeover of  Crusader Resources Limited (ASX:CAS) to 28 February 2018.

Chief executive, Marcus Englebrecht, wants to acquire Crusader primarily because of its Borborema gold asset in Brazil, which he thinks could be moved into production quickly and generate US$30mln in cash per year.

WATCH: Stratex International's Marcus Engelbrecht reinforces transformative potential of Crusader deal

The trouble is, some shareholders and former directors are opposing and are trying to vote Englebrecht off the board and stop the transaction from taking place.

Removal of certain conditions

One of the conditions originally put in place for the deal to go through was that Stratex had to apply for a listing of CHESS depositary interests (CDIs) representing its shares on the Australian Securities Exchange.

However, the company will now have to apply to establish a secondary listing of CDIs on ASX within three months of the scheme being implemented which should coincide with a planned placing.

If granted, the CDI facility would allow all Stratex shareholders to elect to convert their shares to CDIs and trade them on the ASX.

READ: Englebrecht says Crusader attractive on all metrics

Stratex has also said it wont have to consolidate its shares on a 20:1 ratio anymore.

That means Crusader shareholders will receive 6.6 Stratex shares for every Crusader share held.

Stratex added that its current intention is to undertake a future consolidation of its issued share capital in connection with the CDI listing process.

Another A$1mln of funding for Crusader

Given the extended timetable for the acquisition, Stratex has agreed to lend Crusader another A$1mln.

The two already had an existing A$1mln secured convertible note agreement in place which Crusader has fully drawn down on.

The latest funding will be issued in various tranches, starting with A$125,000 which is to be made available immediately.

Stratex shares were down 5.6% to 1.25p in mid-morning trade.

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