www.stratexinternational.com
Stratex International is an exploration and development company focusing on gold and high-value base metals. The company objective is to be a leading-edge and innovative explorer whilst creating revenue from gold and base metal production via well-managed joint-ventures.
Since formation, Stratex has rapidly amassed a portfolio of high-potential exploration licences in Turkey and Ethiopia, primarily focussed on gold.
Stratex International's Afar project boosted by AngloGold Ashanti deal
Stratex International (LON:STI) is set to fast-track the development of its prospective assets in Ethiopia and the Republic of Djibouti, after it agreed a farm-out deal with AngloGold Ashanti (NYSE:AU).
The company announced the signing of a binding ‘Heads of Agreement’ with AngloGold’s subsidiary Thani Ashanti. The deal covers the prospective 2,780 square kilometre land position in the Afar Depression.
The AngloGold subsidiary can earn up to 70% of the assets by funding exploration cost of up to US$7 million. Also Thani Ashanti has invested US$500,000 in Stratex, through a placing priced at a 30% premium.
On London’s AIM market investors have welcomed the news, with shares up more than 11% at 5.22p by midday. Stratex has had a particularly strong run in recent trading on AIM. The stock has gained over 40% since early September, rising from around 6p on the 14th September to an intraday day high of 5.3p this morning.
"We are delighted that Thani Ashanti is becoming a shareholder in Stratex and, more importantly, a cornerstone investor (in Afar),” Stratex chairman David Hall said.
“This deal signals the first major gold mining company moving into Ethiopia and the Republic of Djibouti and highly endorses the exciting gold potential of the Afar Depression.”
Thani Ashanti can initially earn up to 51% of the Afar Project, by spending US$3 million on exploration and development over two years.
In the first year Thani Ashanti must spend US$1 million.
Also under the agreement, Thani Ashanti can acquire further 19% in Afar, by spending another US$4 million on any one licence in the project area.
Thani Ashanti’s initial spend will focus on the Megenta gold discovery, with a 3,000 metre drill programme expected to fast-track exploration.
“Our Megenta hot spring epithermal gold discovery in eastern Ethiopia is an exciting drill target with excellent surface gold indications and high grades,” Hall said.
"We will, in addition, aggressively explore and evaluate the multiple target areas that we have now secured under licence in the Afar Depression within both Ethiopia and Djibouti.”
Megenta is the most advanced exploration area within the Afar Project. To date Stratex has carried out geological and structural mapping, as well as chip sampling.
Magenta’s 'Hyena Zone' yielded up to 16.75 grams per tonne (g/t) gold and 8.8 g/t silver. Nearby Magenta’s 'Gazelle Zone' is a 500 metre long prospect which contains significant gold values, including 2.46m grading 2.29g/t.
“With a greater level of understanding of the Megenta structural framework it is highly probable that already-identified alteration and hot-spring occurrences associated with the Megenta faults may lead to further discoveries,” Stratex said.
The assets in the Afar Depression are made up of the Tendaho Exclusive Exploration Licence (EEL) in Ethiopia and six EEL's in the Republic of Djibouti.
The Tendaho EEL consists of 5 license blocks.
The Stratex East Africa (SEA) subsidiary holds all the assets in Ethiopia and Djibouti, including assets outside the Afar Depression. Thani Ashanti will earn a 5% stake in SEA once it has spent half the US$1 million first year commitment.
Stratex intends to use the US$500,000 proceeds received from Thani Ashanti to develop the assets outside the Afar Depression - including the Shehagne, Berahale, and Tigray EEL's in northern Ethiopia and the Gedemsa EEL in the Central Ethiopian Rift.
