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Stratex inks deal with Turkish group for Hasançelebi and Doğala gold projects

The deal will allow Stratex to start realising value imminently from the Hasançelebi and Doğala projects
Gold and dollars
Stratex will receive US$500,000, subject to gold resource targets being met

Stratex International PLC (LON:STI) saw its shares jump higher today on news the miner has teamed up with TET Madencilik to advance the Hasançelebi and Doğala gold projects in Turkey.

The deal with TET, a private Turkish company, sees Stratex receive US$50,000 in cash and commits the new partner to spending US$1.5mln on exploration and drilling within a two-year period.

READ: Stratex unveils appointment of new CEO, says currently identifying new value-appropriate projects in Africa and Europe

It is also envisaged that TET will pay Stratex a US$500,000 ‘success fee’ should the venture achieve a minimum JORC-compliant measured or indicated gold resource of 100,000 ounces. Additionally, Stratex would receive a royalty on future production at the project (1.5% on precious metals and 5% for any other metals or industrial raw materials).

Stratex will still be responsible for managing the exploration programmes.

"We are delighted to have signed this agreement with TET that will enable us to start realising value for shareholders imminently from the Hasançelebi and Doğala projects,” said Dr Bob Foster, Stratex interim chief executive.

“As outlined in our recent strategy update, realising value from our existing portfolio is a key focus for the company, and the licence transfer of these dormant, non-core projects is one that benefits all stakeholders.

READ: Stratex drill programme unearths maiden gold resource at Anbat project

“Whilst the projects have been non-core to Stratex's portfolio over the last few years, the drilling to date at Hasançelebi, through a former joint venture with Teck, has demonstrated the potential for low-grade, high-tonnage gold mineralisation.“

Foster also noted that the TET deal significantly reduces operational overheads for Stratex in Turkey.

“The board continues to look at a number of flagship projects that could provide the next phase of growth to Stratex, whilst also remaining focused on near-term ways in which we can deliver value to shareholders from our existing portfolio," Foster said.

In late afternoon trading, Stratex shares were 6.7% higher at 0.8p.

 -- Adds share price --

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