Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

BIG PICTURE - Liberia attracts further gold interest with Stratex deal

Liberia has attracted further interest in its gold sector after Stratex International announced it will undertake exploration work at the Sinoe gold licence, owned by private Australian company Aforo Resources.
BIG PICTURE - Liberia attracts further gold interest with Stratex deal

Stratex International (LON:STI) will undertake exploration work at the Sinoe gold licence in Liberia, owned by private Australian company Aforo Resources, expanding its portfolio in the West African country.

Liberia, which suffered from a brutal 14-year civil war until 2003, has had a democratically elected government since 2006. The country has offshore oil deposits and a good mining potential, but has so far been underexplored for gold.

Liberia’s first commercial gold mine is expected to start in 2015 when Aureus Mining’s (LON:AUE) flagship project, New Liberty, is set to enter production. Gold explorer Hummingbird Resources (LON:HUM) is also planning to develop its Dugbe gold project in the country.

Sinoe is situated close to Dugbe and was previously held by Hummingbird before they were required to reduce their area by a statutory 50%.

Cash rich explorer Stratex has agreed to spend a minimum of A$160,000 (£88,000) on exploration at Sinoe by July 4. It also has the option to acquire either Aforo Resources Liberia, a wholly owned unit of Aforo Resources, or the Sinoe project for a further A$100,000 once Stratex’s spending on the project reaches A$320,000.

"We have monitored work on this licence for the past nine months and have decided that the results of the exploration programme, especially a soil-sampling programme, justifies us taking this step,” said Stratex chief executive Bob Foster.

Liberia has received about US$18bn (£11bn) foreign direct investment to date, mainly in the mineral, oil and agricultural sectors, with miners BHP Billiton, Arcelor Mittal, Vedanta and Severstal already operating in the country. The economy is expected to grow almost 7% this year, according to the International Monetary Fund.

“We already have a footprint in Liberia as a result of our joint venture with BG Minerals Ltd and this has allowed us to evaluate the wider exploration potential of the country, which we rate very positively, a view shared by a number of investors and funds that we have met in London in recent months," said Stratex’s Foster.

Stratex has an option to earn to 75% of the North Suehn gold licence in north-western Liberia by spending US$1.1mln within two years following an agreement last year with BG Minerals.

This year is an important one for Stratex with maiden production expected at the Altintepe project and the start of construction at Muratdere, both in Turkey. It started 2014 with around with £10mln in cash, helped by the recent sale of its interest in the Öksüt gold project in Turkey, putting the company in an enviable position when so many explorers are struggling for finance.

View full ORR profile View Profile

Oriole Resources PLC Timeline

Related Articles

Gold fragments
SP Angel said the company could be “one of the top-yielding precious metals producers on the London market”
May 22 2018
New money allows Scotgold to proceed with long-awaited redevelopment of Cononish
Thor Explorations' Segilola high grade pit offers strong return on investment
June 12 2018
The 100% owned project sits on a 27 sq km exploration licence containing a 17 sq km mining licence

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use