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Stratex International boosts cash pile with Inlice sale


-- adds broker comment--

Gold explorer Stratex International (LON:STI) has received a good price for its stake in the Inlice joint venture in Turkey, brokers said today.

An unnamed Turkish company is buying the licence for US$10mln cash, equivalent to an in-situ reserve price of US$167 per ounce of gold.

Stratex will receive about US$3.7mln after tax based on its 45% stake in the venture.

Shore Capital said it was a good outcome considering joint venture partner NTF had decided not to proceed with Inlice’s development.

Northland, meanwhile, added that its current price target and forecasts are under review for a possible upgrade after the sale.

“The US$3.7m generated from the sale is in line with our US$3.8m valuation of the project and a positive deal for shareholders,” it said.

Bob Foster, Stratex’s chief executive, said: "We are pleased to see a realisation of the Inlice sale on such favourable cash terms - to achieve a return of US$167 per oz of gold reserve is an excellent result.”

“We acknowledge the support of our JV partner NTF in closing this deal, which will see 45% of the proceeds being paid to Stratex.”

Stratex recently sold its 30% stake in the Öksüt gold project for US$20mln cash and retained a royalty worth up to a further US$20mln.

Following that sale, Stratex’s cash balance rose to US$26mln (£16.5mln). It will use the money to fund its own project and also to acquire advanced gold projects that can be advanced rapidly and with limited expenditure.

Stratex’s Altıntepe project in Turkey is scheduled for gold production in late 2013 or the first quarter of 2014. It also has exploration projects in East Africa and West Africa.

Shares rose 2% to 4.2p.


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