TIDMSTI
RNS Number : 0119A
Stratex International PLC
21 December 2017
Stratex International Plc
('Stratex' or 'the Company')
End of Year Update
Stratex, the AIM-quoted gold-focused exploration and development
company in Turkey and Africa, is pleased to provide an update on
its operations.
Operations
Since his appointment as interim CEO of the Company on 27
November 2017, Dr Bob Foster, supported by the Stratex team, has
commenced a review of the Stratex group portfolio of assets. This
has included a visit to the Thani Stratex Resources ("TSR") assets
in Djibouti and Egypt (Stratex's holding in TSR will be 30.1% once
the final tranche of TSR fundraising, announced on 6 December 2017,
is complete). Stratex's review of its investment in TSR is ongoing
and the Company will shortly submit its initial findings to TSR and
expects to be in a position to update shareholders on all key
projects in Q1 2018.
Meanwhile, review of the Dalafin project in Senegal ("Dalafin"),
where Stratex holds 85% equity in the JV company that owns Dalafin,
is now complete. The Company believes that there is still upside at
the project but it is not prepared to commit further funding at
this time. Instead it can confirm that it is now seeking
joint-venture financing in order to advance exploration work on the
project. Discussions have been initiated with a potential
joint-venture partner, with a further update anticipated in Q1
2018.
At the Company's former Karaa aç gold project in Turkey, Anadolu
Export Maden Sanayi ve Ticaret Limited irketi ("Anadolu") is
working towards resource definition. Under the terms of the
transfer agreement between Stratex and Anadolu (announcement dated
2 February 2015), the licence has been transferred to Anadolu,
which has accepted all financial liability for the licence and is
funding a resource-drilling programme up to US$1.5 million. Subject
to Anadolu delivering a minimum JORC 2012-compliant Indicated
Resource of 50,000 ounces gold, it is required to pay Stratex a
one-off cash payment of US$500,000. Stratex also retains a 1.5% net
smelter returns royalty on any future mineral production. As
previously reported, the time period for completion of this
investment and resource definition was originally 2 February 2017
but delays in permitting have extended this timeframe. We are
pleased to report, however, that the first stage of permitting - to
allow hydrogeological boreholes and road access - was granted to
Anadolu on 27 November 2017 and Anadolu expects infill drilling to
commence in Q1 or Q2-2018, depending on weather conditions. The
Company looks forward to further updates from Anadolu in due
course.
At the 14.87%-owned Muratdere gold project in Turkey, Stratex's
joint-venture partner, Lodos Maden Yatırım Sanayii ve Ticaret A. .
("Lodos"), is committed to ongoing expenditure during 2018,
relating to the Environmental Impact Assessment programme and
general field expenses. In 2016, Stratex advised that it would not
be committing any further funds, due to the depressed copper price
at that time but, with a considerably stronger outlook for copper
and a current metal price of around US$6,900/t, the Company is now
reviewing its position in discussion with Lodos.
The Company's remaining Turkish assets are either the subject of
existing royalty arrangements or are the focus of ongoing
discussions with a number of potentially interested Turkish parties
with the intention of transferring the remaining licences in
exchange for future royalties, the key objective being to reduce
future licence renewal and maintenance costs. Stratex is also
evaluating a number of new investment opportunities in Africa and
Eastern Europe.
The outcome of this review and related actions will enable
Stratex to provide its shareholders with a more detailed vision of
the Company's business plan and proposed strategies later in Q1
2018.
The Directors believe that Stratex currently has a strong
balance sheet, with cash of GBP2 million as at 20 December 2017,
and the loan made to Crusader Resources Limited of A$1.5 million
(approximately GBP0.89 million) is due to be repaid by no later
than the 9(th) May 2018.
Shareholder engagement
Since Bob Foster's appointment, the Company has been working
hard to re-engage with shareholders at all levels to outline future
strategies to rebuild the Company whilst ensuring their concerns
are taken on board.
CEO search
Bob Foster was appointed as interim CEO following the recent
General Meeting, in order to re-engage with shareholders and
provide clear direction on future corporate strategies following
the aborted acquisition of Crusader Resources Limited. The Company
considers succession planning a key aspect of good governance and
in order to address the most pressing issue, it is in the process
of conducting a search for a permanent CEO. Discussions are
underway with potential candidates and the Company hopes to
announce the appointment of a new CEO during Q1 2018.
Dr Bob Foster, Interim CEO of Stratex, commented:
"The Board and management are firmly looking to the future of
Stratex and the current business review will enable important
decisions to be made that will shape the future of the Company. I
believe our portfolio of projects and the Company's track record
offer a sound platform from which to seek new investments that
advance our ownership across the entire development curve.
We thank our shareholders for their continued support and are
encouraged by the response we have received over the last few weeks
of engagement. We look forward to what we believe will be an
exciting 2018 for the Company."
** ENDS **
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Following the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information please visit
www.stratexinternational.com, @StratexPLC on Twitter,
email info@stratexplc.com, or contact:
Stratex International Tel: +44 (0)20 7830 9650
Plc
Claire Bay/Dr. Bob Foster
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / Daniel Bush
Hannam & Partners Tel: +44 (0)20 7907 8500
Neil Passmore / Andrew
Chubb
Camarco Tel: +44 (0)20 3757 4980
Gordon Poole / Nick Hennis
/ Monique Perks
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2
million ounces of gold and 7.09 million ounces of silver, as well
as 186,000 tonnes of copper. The Company owns 15% of a copper-gold
project at feasibility stage in Turkey and an exciting exploration
project in Senegal. The Company also has significant interests in
Thani Stratex Resources Ltd and Tembo Gold Corp. for their
exploration projects in Djibouti and Egypt, and Tanzania
respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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