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 welcomes Sheba acquisition
Stratex International (LON:STI) welcomed the announcement today that Centamin (LON:CEY) has made a £7.48m offer for PLUS-listed Sheba Exploration. Stratex has a 4.94% stake in Sheba and sees the acquisition as thumbs up for its own prospects in Ethiopia, where it is highly active.
Stratex, which has two exploration agreements with Sheba, including for the Shehage gold prospect in Ethiopia, says it regards the offer as an endorsement by Centamin of Ethiopia’s potential, not least the exploration portfolio that Sheba has established there in recent years by “good grassroots exploration”.
Indeed Centamin makes the point that the intended offer for Sheba represents an initial strategic move to diversify into regions that provide good opportunity for value growth.
Centamin's proposed acquisition will include Sheba's interest in the Shehagne project in which Stratex is completing a work and expenditure programme to earn 60%, with the right to increase to 80%.
Stratex currently hold 5.3 million shares in Sheba and anticipates exercising matching warrants. The expected net (pre-tax) valuation of £576,000 for its stake will help strengthen Stratex's financial position.
Stratex chief executive Bob Foster added: “Our own exploration programmes in Ethiopia and Djibouti have proved extremely successful over the last two years as we continue to discover new multiple low-sulphidation gold systems in the Afar region, which we believe define a significant new gold province.
“Our work has also attracted the early interest of major gold-producer AngloGold Ashanti, underpinning the prospectivity of our land holding,” he added.
However, Foster is keen to stress that his company’s exploration success in the Afar region of Ethiopia has not deflected it interest in other, geologically older structures there and that lie within the Arabian Nubian Shield.
The Tsemmetti prospect in northern Ethiopia, for instance, is an “exciting gold target” within Sheba's Shehagne licence that we is slated for drilling in August 2011.
“The possibility of having a substantial joint venture partner such as Centamin, given its successful track record in taking the Sukari gold mine in Egypt to production, is a positive and very welcome development," said Foster.
Centamin’s offer values Sheba shares at 6.15 pence each. It has been endorsed by the directors and has the backing of investors holding around 36 per cent of the stock.
Stratex’s other key assets include a portfolio in Turkey, where it is looking to move into gold production through its partnership with its Turkish partner NTF, with initial production targeted at the Inlice project by the first half of 2012; and at Altıntepe by 2013. Both are subject to the outcome of scoping and feasibility studies.
