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UPDATE - Stratex International gets green light for Altintepe

Forestry permit award means construction work can begin on the gold mine in Turkey.

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Stratex International’s (LON:STI) Altintepe project in Turkey has received its forest permit, the final hurdle before construction work on the gold mine can begin.

Bahar, Stratex’s partner on the project, has already begun to clear the site ahead of the start of construction with the building work expected to take approximately six months.

Altintepe will produce a minimum of 30,000 ounces per year when fully commissioned, with Bahar to finance construction costs through to gold production and first net cash flow.

Bob Foster, Stratex’s chief executive, said: "This is very good news indeed as the Forest Permit was the final regulatory hurdle facing the project.

"This is a major step in the transition of Stratex to being a gold-producing company and allows us to plan for the future with even more confidence."

Altintepe is 55% owned by Bahar and 45% by Stratex. Once production is underway, Bahar will receive 80% of net cash flow until it has recovered its investment, with 20% of net cash payable to Stratex.

Subsequently, net cash will be disbursed on the basis of 55% to Bahar and 45% to Stratex.

Northland added that the award of the forest permit was a very exciting development and means that in around six months Stratex will be making the transition from developer to producer. 

Northland has a price target of 10.9p and ‘buy’ stance.

Shares rose 3% to 3.81p.

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