Stratex International PLC Funding of Further Exploration at Thani Stratex (5967F)

TIDMSTI

RNS Number : 5967F

Stratex International PLC

19 May 2017

Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining

Stratex International Plc

('Stratex' or 'the Company')

Funding of Further Exploration at Thani Stratex

Stratex International Plc, the AIM-quoted gold focused exploration and development company in Turkey and Africa, is pleased to announce that it has today agreed to continue funding exploration planned by Thani Stratex Resources Ltd ("TSR") at its Anbat gold prospect ("Anbat" or the "Prospect") in Egypt. Following completion of the investment, Stratex's holding in TSR will be 30.1%.

Highlights

-- Stratex has agreed to subscribe for new shares in TSR, for a total investment of US$390,000 (approximately GBP300,000) as part of a total share placement of US$1 million;

   --    Drilling commenced at Anbat in Egypt - 10 holes for 2,380 metres planned; 

-- Programme aimed at testing extensions of previously identified mineralised zones and defining controls on high-grade;

   --    The objective of the current drilling programme is to deliver an initial resource estimate; 
   --    Drilling results from TSR's Pandora project in Djibouti expected in June. 

Commenting on the announcement, Stratex's Chief Executive Officer, Marcus Engelbrecht, said: "I am delighted to be able to announce Stratex's participation in the successful US$1 million fundraising that will enable further drilling at Anbat. Results to date have been highly encouraging, delivering a number of high-grade gold intercepts. Consequently we are excited by the future value that we believe the Prospect can deliver to our shareholders, and look forward to updating the market on the results of the drilling programme in due course."

Further Details

In 2014, Stratex and Thani Emirates Resource Holdings Limited ("Thani") combined their assets in East and North Africa to form TSR, a privately-owned exploration and development company. Each party contributed US$1 million of initial working capital towards development of the portfolio, focused primarily on gold in Egypt and Djibouti. Stratex's initial share in the joint-venture was 40%. Various fundraising exercises and shares issued by TSR had diluted Stratex's interest to 30.4%, and a recent issue of shares in lieu of fees has diluted Stratex's interest further to 29.5%. Stratex's share of TSR's loss for the year ended 31 December 2016 was GBP160,615 and as at 31 December 2016, Stratex's investment in TSR was held in the Company's balance sheet at a carrying value of GBP5.8m.

Stratex and Thani will provide a total of US$1 million of new equity in TSR, split US$390,000 and US$610,000 respectively (Thani's total funds will be invested in two tranches: US$400k in May 2017 and U$210k in August 2017), to undertake further drilling at Anbat, within the Anbat-Shakoosh gold district in Egypt, and to meet working capital requirements. Immediately following both tranches of Thani's investment, Stratex's holding in TSR will be 30.1%.

TSR has commenced a 10 hole diamond drilling programme for 2,380 metres. The new holes will test the eastern extension of mineralisation intersected in hole TDAND-001, which yielded 58.60 m grading 2.07 g/t Au from 47.60 m including 23.55 m grading 4.38 g/t Au from 69.65 m (refer to Stratex's press announcement dated 27(th) February 2017), and the southern extension of mineralisation intersected in hole TDAND-007, where TSR reported 30.40 m @ 1.71 g/t Au from 34.00 m including 0.65 @ 71.10 g/t Au from 45.35 m, and 0.75 m @ 45.50 g/t Au at 113.25 m (refer to Stratex's press announcement dated 19(th) April 2017).

The drilling also aims to determine the controls on high-grade mineralisation and it is intended that these holes will allow definition of an initial resource and show the upside potential of the gold mineralisation to the east, west and south.

In Djibouti, TSR has completed 15 holes at the Pandora epithermal gold project, with full results expected in June.

For further details, the announcement by Thani Stratex can be found at http://www.thanistratex.com/news/

* * ENDS * *

For further information please visit www.stratexinternational.com, email [e-mail], or contact:

 
 Stratex International        Tel: [phone] 
  Plc 
 Marcus Engelbrecht / Claire Bay 
 Grant Thornton UK LLP        Tel: [phone] 
 Philip Secrett / Samantha Harrison / Daniel Bush 
 Hannam & Partners            Tel: [phone] 
 Neil Passmore/ Andrew 
  Chubb 
 Camarco                      Tel: [phone] 
 Gordon Poole / Nick Hennis 
 

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 ("MAR").

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 and an exciting exploration project in Senegal. The Company also has significant interests in Goldstone Resources Ltd, Thani Stratex Resources Ltd and Tembo Gold Corp. for their exploration projects in Ghana, Djibouti and Egypt, and Tanzania respectively.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 19, 2017 02:00 ET (06:00 GMT)