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.
Altintepe deal major step forward says Stratex
The boss of Stratex International (LON:STI) hailed this week’s partnership with Turkish firm Bahar Mining on the Altintepe project as a massive step forward for the group.
Chief executive Bob Foster said the deal should help Stratex become a significant gold producer in the medium term and at minimal financial exposure, as Bahar is funding all pre-construction and construction costs through to production.
It also gives it the ability to move forward on a number of fronts now that it does not have to find the finance to bring northern Turkey-based Altintepe into production.
“It gives us greater financial flexibility to focus on other exciting projects including the Blackrock project in Ethiopia where drilling has now started,“ he said.
Drilling results from Blackrock, an early stage but highly promising project, are expected in the first quarter of 2012, in what looks to be an exceptionally busy period for the London- based group.
In addition to the initial results from Blackrock, Stratex is awaiting approval of the environmental impact study for the Inlice gold development in Turkey, while drilling results are due from its joint ventures with Centamin (LON:CEY) at Shehagne, also in Ethiopia, and Centerra at Ӧksüt in Turkey.
The group will also start to integrate last week’s £4.7 million West African acquisition Silvrex, which has a gold portfolio in Senegal and Mauritania.
Stratex paid £850,000 immediately in shares for Silvrex, valued at eight pence each, along with a deferred additional consideration of £3.8 million on the identification of a JORC-compliant resource of more than 500,000 ounces of gold by the end of 2014.
Brokers echoed Foster’s bullishness over the Altintepe deal. Northland said the joint venture enables shareholders to benefit from the gold production, but allows the Stratex team to concentrate their efforts on exploration throughout the rest of its African and Turkish portfolio.
The broker added that Bahar had already managed and operated gold mines in Turkey on a contract basis and possesses the experience necessary to develop the project.
Foster said Bahar was keen to get involved at Altintepe after original partner NTF dropped out earlier in the year.
NTF is Stratex’s partner in the Inlice project in Turkey and wanted to put that project into production before it committed any more cash for the Altintepe feasibility work, Foster explained at the time.
Bahar will carry out an initial environmental impact study and technical and economic due diligence and if it decides to proceed will take a 55% stake in the project.
The provisional minimum production target is 30,000 ounces of gold per year with Bahar receiving 80% of the cash generated until all of the start-up and development costs are paid off.
It is the latest in an impressive list of major mining companies that have paired with Stratex this year.
As well as Canadian group Centerra, Chile-based copper giant Antofagasta (LON:ANTO) took a three per cent stake in September as part of a joint exploration programme for copper in Turkey.
Gold miners AngloGold Ashanti and Thani Ashanti meanwhile own 11.5% and 2.2% respectively. Thani Ashanti is also Stratex’s joint venture partner on the Afar project in Ethiopia and Djibouti.
