Hanson Westhouse issued a note on Stratex International PLC (AIM: STI), maintaining its ‘buy’ recommendation, in the wake of the group’s announcement that a scoping study to identify key issues and ensure optimum fast-track development for the Inlice and Altintepe gold projects in Turkey is now complete.
The company expects to sign the definitive joint venture agreement with joint venture partner NTF by the end of November. Having already expended US$157,000 for a three month development programme, NTF continues to contribute US$50,000 per month until the agreement is signed.
Stratex has sufficient funds for the next 18 months and will receive an additional US$1 million from NTF once the agreement is signed.
“With the Inlice and Altintepe development on track we maintain our ‘buy’ recommendation with our valuation rising very marginally from 8.51p to 8.53p due to the increase in Stratex’s investment and options in Sheba Exploration,” the broker said.
Inlice and Altintepe contain a current combined oxide gold resource of approximately 570,000 ounces and are targeted to be brought into production within 18 and 36 months, respectively, together with joint venture partner NTF.