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Stratex entering new era as chairman announces retirement

"As a management team, we are confident that the clear strategic, operational and executive changes undertaken during the last eight months leave us in a very strong position from which Stratex can start achieving its true potential"
Gold pour
The management team has received an infusion of fresh blood this year

Stratex International PLC (LON:STI) shares rose on Thursday after the miner said it is expecting strong news flow over the coming months from IAMGOLD's drill programme at the Dalafin project.

The company, which faced a shareholder revolt last year over a proposed takeover of Crusader Resources, set about stabilising things in the first half of 2018, with a realignment of existing assets and a refresh of the management team.

READ: Stratex says IAMGOLD to commence drilling at Dalafin gold project in Senegal

Peter Addison, the non-executive chairman, has announced his retirement from the company while Chris Worcester, an independent non-executive director, is also bowing out.

The company has identified replacements and these will be announced when Addison and Worcester leave on September 3.

The departures were announced in the interim results of the gold explorer and project developer.

The loss before tax in the first six months of the year was £3.30mln versus a profit of £800,000 in the corresponding period of last year but this was largely a result of Stratex’s share of a write-off – US$2.7mln – of roughly US$8.7mln on the value of licences in Ethiopia that were cancelled in May.

The licences were held by Thani Stratex Limited (TSR), in which Stratex has a 30.4% interest.

READ: Stratex International says Thani Stratex has Ethiopian licences cancelled

The company, which currently has no revenues, said it significantly reduced its administrative and operational costs during the first half of the year to £1.04mlm from £1.49mln in the same period of last year.

The company’s cash balance at the end of June was £2.31mln.

READ: Stratex takes up gold exploration in Cameroon, supported by a £1mln placing

“The first half of 2018 has been a time of significant change at Stratex. With a change to executive management and the board, the company has been busy consolidating its existing and well-developed portfolio in Turkey, executing agreements for the advancement of the Dalafin project and refocusing on new early stage exploration projects in Europe and Africa, including our exciting new project in under-explored Cameroon,” said Tim Livesey, the chief executive officer of Stratex.

“The completion of a significant earn-in option agreement with IAMGOLD on the Dalafin Licence in March was excellent and we expect strong news flow over the coming months as the results of IAMGOLD's drill programme come through. The potential of this deal to lead to a defined resource, and ultimately commercial mining, is very real and we believe will add significant value for our shareholders,” Livesey said.

In mid-morning trading, Stratex shares were 4.2% higher at 0.37p.

 -- Updates share price --

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