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.
UPDATE: Stratex gets boost as World's third largest gold miner buys 11.5 pct stake
Adds comments from broker Fox-Davies
Stratex International (LON:STI) shares were trading up more than 11 percent this morning after the firm revealed AngloGold Ashanti - the world's third largest gold producer - is taking an 11.5 percent stake in the company.
AngloGold is making a 3 million pound private placement into Stratex to fast-track exploration at the company's 3,853 square kilometre Afar project, which spans Ethiopia and Djibouti in east Africa.
“This is an excellent development for and it highlights the value that the strategic thinking of management has added to the company,” said Fox-Davies analyst Peter Rose. The broker repeated a ‘buy’ recommendation, which targets 12.5 pence a share.
“Stratex now have a strong track record of forming alliances with powerful mining heavyweights,” Rose added as he listed the group’s high-profile partners - Teck Cominco, Centerra, Antofogasta Minerals and now AngloGold.
The company were reaching a point where they were running out of money and they would’ve had to look to the market for more cash, Rose said. But now though this investment it is well placed to continue its aggressive exploration programme.
“It also shows how much confidence Anglogold have both in the management of Stratex and in the prospectivity of the geology of the region, which is still vastly underexplored,” the analyst added.
Stratex also said today it could spin-out its east african assets - covering Ethiopia and Djibouti - into a separate entity in the near future.
In early deals the stock was up 11.11 percent on yesterday's close - changing hands at 8.75 pence.
Investors were told Stratex is considering spinning-off its east African assets in the next six to 12 months.
The details of the placing are as follows: AngloGold will subscribe for 38.8 million shares at 7.72p raising £3 million - representing a 10 percent premium to the previous 20 days average trading price.
The funds will be used in part to fast-track exploration in the Afar epithermal gold province in Ethiopia and Djibouti, said the firm, which focuses on gold and base metals in Turkey and Africa.
Stratex chairman Christopher Hall said today: "We are delighted that AngloGold has expanded its involvement with Stratex through this substantial £3 million private placement.
"AngloGold is already a strategic partner, working with us on the Megenta epithermal gold discovery (east Africa), where a 3,000 metre drill programme is currently underway.
The firm said that it believed a motivating factor for the placement was AngloGold's clear understanding of the significance of the Afar region as a new gold area, where it is committed to exploration.
In Ethiopia and Djibouti, exploration has unveiled an extensive new gold district (the Afar epithermal gold province) which has attracted Thani Ashanti - an AngloGold Ashanti joint venture company.
AngloGold is currently funding exploration of the first 11 licence areas - the Afar Project. Drill-testing of the first target - called Megenta- began in April this year.
Detailed exploration work is also underway at Stratex's wholly owned Blackrock prospects, and it is expected that they could be fast-tracked through to drill-ready status before the end of the year.
Meanwhile, in Turkey, where the firm has eight projects, advanced projects are the Inlice and Altıntepe gold sites, which are currently undergoing respective feasibility and scoping studies funded by Turkish JV partner NTF Insaat Ticaret Ltd Sti, with first gold pour targeted for Inlice by early 2012.
"Our Turkish portfolio of gold and copper exploration and development assets is progressing well, as demonstrated by recent alliance agreements on the Altunhisar copper project with Centerra Gold and porphyry copper exploration with Antofagasta," continued Hall.
"Importantly, our exploration activities are underpinned by the impending gold production from our Inlice project also in Turkey in the first half of 2012. "
He added: "As a result the board is of the opinion that a spin-off of the east african assets within the next 6-12 months should be given due consideration to maximise shareholder value."
He said that a final decision on this would depend on the success of the current drill programme at Megenta, the prevailing market conditions and the views of shareholders.
