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UPDATE - Stratex cleanses portfolio

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Stratex International (LON:STI) has an "optimum portfolio" of gold opportunities going forward into the remainder of 2014, its boss said.

Bob Foster, Stratex's chief executive, added that the next few months should see a steady stream of news relating to future cash flow and its early stage discovery at Dalafin in Senegal.

Foster added the group has dropped its Tendaho (Megenta) licence in the Afar region of Ethiopia to focus on better prospects in East Africa, Senegal and its assets nearing production in Turkey.

“Some projects, including the Tendaho project (Megenta), have now been relinquished where our on-going exploration has indicated that the discovery potential is low.

“Relinquishing such projects is an absolutely critical part of our exploration strategy and ensures that we manage and direct our financial resources to best effect,” he said.

Among its ongoing portfolio, he highlighted the near-production Altintepe project in Turkey; future royalty revenue from Öksüt, also in Turkey; the discovery at Dalafin; early stage exploration in Liberia; and the recent investment in Tanzania-focused Tembo.

He said that the epithermal mineralisation it discovered in the Afar Region remained an important target despite letting go of Tendaho and it is working with partner, Thani, on a drilling plan for the Pandora project in Djibouti and acquisition opportunities.

The Afar Project comprised the Tendaho licence in Ethiopia and multiple licences in Djibouti, including Pandora.

Exploration of these licences was funded by Thani and Anglogold Ashanti and managed by Stratex, but now that Anglogold has pulled out Dubai-based Thani is Stratex’s sole partner in the project.

“We continue to believe that 2014 holds much promise for Stratex International with some major developments from the company expected,” said house broker Northland Capital Partners.

“Today’s announcement can be viewed as a cleansing of the portfolio with Stratex relinquishing a number of exploration projects that failed to contain the significant exploration targets that the company demands. This does reduce our price target to 10.9p from 12.8p but this still offers substantial upside to the current share price,” the broker said.

Stratex's shares were up 5.2% to 4.07p in lunch-time trading.

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