Stratex (LON:STI) has completed forming a new exploration firm with Egyptian joint venture partner Thani, which will be a vehicle for growth in the Arabian Nubian Shield and Afar region.
The new company is called ThaniStratex and Stratex owns 40% and Thani has 60%.
Concessions being transferred into the new entity are the Blackrock licences in Ethiopia, Okilla, Assal and Dimoli Khan licences in Djibouti and the Hodine and Wadi Kareem licences in Egypt.
Stratex and Thani will each contribute US$1mln (£610,000) initial working capital to fund the initiative and will aim to list the firm on a stock market in due course.
Stratex's non- exec chairman Christopher Hall told investors: "Further exploration to evaluate the undoubted potential of our properties in the region was going to require significant funding beyond our own resources which was not a good fit with Stratex's business model.
"We have barely scratched the surface of a major new gold bearing province with a few tens of thousands of metres of drilling.
"By entering into partnership with Thani, with its experience and track record in the region, we have ensured that we do justice to this exciting portfolio of properties where we see a clear analogy with the rift-related, epithermal gold province in Argentina.
"We also gain indirect exposure to Egypt where Centamin have demonstrated the geological potential through the development of the Sukhari mine, with in excess of 10 million oz of resource, and in time other jurisdictions in the region."
He said planning was well advanced for further drilling at Blackrock, in northern Ethiopia, and an initial drill programme at Oklila in Djibouti where the surface sampling of the Pandora structure has returned some of the best results from the region.
Founder of Stratex and former chairman David Hall has been appointed chief executive of the new company and has stepped down from the Stratex board to concentrate on growing an enlarged portfolio for ThaniStratex.