Stratex Share Discussion Threads

[romeike] 19/9/2017 22:56

It seems to me likely a merger with Thani-Stratex would occur very quickly as I understand David Hall approached Stratex about this is July but was rebuffed in favour of the Crusader fantasy.

The below sets out their position and shows they are intent on focussing Stratex resources appropriately instead of selling us off cheap on a $100 million gamble.


Proposed strategy for “New Stratex”

The new strategy would be to maximise funding on projects that have the best chance
of increasing value.

The market is short of good early stage gold exploration companies. The most
significant uplift in economic value is achieved through early resource definition and
proving thereof. This approach is supported by two mining companies who are major
shareholders – AngloGold Ashanti and Teck Resources.

All STI's assets will be reviewed. Focus will be on projects that appeal best to strategic
partners and shareholders and costs will be reduced on underperforming assets.

The strategy must be to maximise STI's current cash situation and not to dilute
shareholders until value has been increased.

[tadtech] 19/9/2017 22:55

Stratex have been VERY selective in what they say about the requisition.

I have now read the full letter of intent and it does make so much sense.

I really urge shareholders to contact Mr Foord to seek more information and possibly offer support.


Further..........

I cannot understand this statement, where have Stratex engaged with their shareholders and received 'strong support' ???

The Board has engaged fully with the shareholders of both Stratex and Crusader on the proposed merger and has received strong support from independent shareholders from both companies.

[glibgibon] 19/9/2017 22:53

Has anything been released by Hall and Frood to say what their intentions are for Stratex if they aren't going for the Crusader deal?

[romeike] 19/9/2017 22:40

If the Chairman of AngloGold Ashanti says it's a bad deal. I believe him. We can only hope the alternative is better. One route is certain value destruction the other at least has a chance of an improved share price.

Does anyone here really believe a re-rate to 3p+ will happen post deal given the market response to date?

[sicilian_kan] 19/9/2017 22:28

Both alternatives are as bad as each other.

On the one hand, you have the current management, whose choice of asset (Crusader) was done at an over valued price and where existing funds will not last long. [Altintepe criticism is unfair, the alternative was litigation plus dilution to fund Phase 2 of the mine]

On the other hand, you have the old board desperately seeking to invest in early stage East African projects, which was the old and failed strategy.

Best not to take sides or even be invested here.

[romeike] 19/9/2017 20:30

It is very notable that Marcus has chosen to omit the fact that as far as I can tell six out of seven largest shareholders are against the deal.

I made a big mistake when I first supported the deal. I assumed that any decent CEO would obviously have sounded out the major shareholders first and ensured their support. It seems like this did not happen.

[goldenshare888] 19/9/2017 19:26

"Current" Stratex board adding hypocrisy to the agenda now?!!

Shameful.

[ryanandbethanjones] 19/9/2017 19:22

I have just done so. Together we all can show Marcus exactly what we think of this deal

[tadtech] 19/9/2017 19:11

Paul Foord can be contacted via email for any shareholder who wants to offer support.

[e-mail]

[tadtech] 19/9/2017 18:46

What the current Stratex directors seem to ignore is the share price and the plight of EXISTING shareholders who may have paid 3p+

Shareholders are only interested in the value of their investment. Since the tenure of Marcus Englebrecht the share price has collapsed to historic lows with no real signs of recovery. It is clear the market does not like the deal.

For the share price to return to 2p, based on the current issued capital, the market cap would only need to reach £9.35m, a modest increase from current levels.

If the Crusader deal completes the market cap would need to reach £50m to return to 2p, a massive uplift of £25m needed, based on the current value of CAS & STI in the market right now

Not one director of Stratex has bought shares in the last 3 years, the newly appointed CEO has a NIL holding.

It is ironic that the current BOD are now ridiculing the implied proposal of David Hall to merge Stratex with Thani-Stratex but this is what was said by Marcus in May.

"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."

[goldenshare888] 19/9/2017 18:15

Release from "current" Stratex board sounds desperate to me - clinging onto their cosy deal with crusaders' hole!

Marcus seems to be in love with this $100M black hole in the bush of Brazil!

Thani backing this move bodes very well indeed.

Good riddance to black holes I say....

[juju44] 19/9/2017 15:19

Rubbish on here . Englebrecht was useless at deal making at Archipelago and sold the company for a fraction of its worth . Time to go back to your Aussie buddies and fine some other suckers to hand them their money

[romeike] 19/9/2017 15:08

Why are stratex assets worth zero in this deal, and yet touted as worth so much in the merged entity? Why are we paying so much for what in my view is a distressed company that otherwise would be making a urgent placing at a significant discount to its already poorly performing share price? Why have new directors to every company I own bought at least a token holding in the company but Marcus hasn't bothered? Why should Stratex shareholders be diluted into oblivion on such a risky venture involving over $100 million capital raising and contractual obligations to continue extravagant salaries to two directors? Why has Marcus set himself a weak incentive plan that as I understand it could effectively award him hundreds of thousands of pounds simply for seeing the deal through to completion?

So far as I understand it the original complaint against this deal came quite some time ago from the AngloGold Ashanti Chariman but Marcus ignored their concerns and this has led directly to this investor revolt.

So far as I know not one large shareholder has actually declared support for the deal and I fully expect the CEO and Chairman to be replaced and the deal to be thrown in the trash.

[bastiat79] 19/9/2017 14:49

Why would you want to get rid of Marcus Engelbrecht as director and replace him with two previous directors? Marcus has a great record of providing shareholder value anyone can research. Maybe he is doing this by making a deal that recognises the value of Crusaders assets (which I am sure the Crusader directors are well aware of). The two previous directors motivation may be that they can see the focus will be in Brazil not Africa where their interest lies so they are not happy. Maybe they really were hamstrung in Turkey and made the best of a bad situation? I am sure that this is all being thrashed out amongst the major players but I think the deal between Stratex and Crusader will be great for both of us. In the end I think the major shareholders will agree.

[bastiat79] 19/9/2017 14:49

Why would you want to get rid of Marcus Engelbrecht as director and replace him with two previous directors? Marcus has a great record of providing shareholder value anyone can research. Maybe he is doing this by making a deal that recognises the value of Crusaders assets (which I am sure the Crusader directors are well aware of). The two previous directors motivation may be that they can see the focus will be in Brazil not Africa where their interest lies so they are not happy. Maybe they really were hamstrung in Turkey and made the best of a bad situation? I am sure that this is all being thrashed out amongst the major players but I think the deal between Stratex and Crusader will be great for both of us. In the end I think the major shareholders will agree.

[romeike] 19/9/2017 14:02

Proxy voting should be possible but the requisition shareholders are hoping as many shareholders as possible will attend in person to demonstrate the level of support against the deal. A reasonable baseline of active support against the deal exists, including another institutional investor not so far mentioned here, so with a public appeal setting out the arguments and enough further support there is a chance to reach the required majority. So in short, confidence is there but we will still need all votes possible.

[romeike] 19/9/2017 13:44

Yes that's right. I didn't want to post an email address but I suppose it is publically displayed anyway on their site so no problem.

[tadtech] 19/9/2017 13:31

romeike

I will copy your post to my bulletin board also, it may be appropriate to offer Paul Foord email address also, I assume you used his Thani-Stratex one which is...........

[e-mail]

[goldguru2017] 19/9/2017 13:23

Kestrel Gold (TSX Venture Exchange symbol KGC.V)

Please allow me to bring your attention to this low-market capitalisation, high potential gold/copper exploration company that has assets in the ‘Eye of the Storm’ – the White Gold Area in the Yukon, Canada.


- Recently acquired acreage in one of Canadas most prolific gold areas – the ‘Eye of the Storm’ White Gold Area in the Tintina Gold Belt.
- Easily accessible, excellent infrastructure, safe jurisdiction.
- Sampling just finished, funded drilling programme about to commence
- >100g/T Gold sample from Clear Creek – excellent potential
- Peak values of 12,400 ppb Au from soil sampling on Val Jual
- Relative low market cap – CDN$4.2 million
- CEO with proven track record of growing public companies share price by multiples
- Leading Canadian gold geologist, Jean Paulter, running drilling campaign
- Nearby to discovered goldmines (Coffee, Golden Saddle)
- Val Jual /10 Mile Creek acreage surrounded by active 2017 programs by other companies
- Drilling news flow expected before year-end

Please do your own research on the Company before investing. Thank you for your time.

[romeike] 19/9/2017 12:56

If you would like to join me as being represented on communications between the requisition shareholders and the current CEO of Stratex as opposing the deal I suggest you please urgently contact Paul Foord with your name and number of shares held. It could increase the chances of an earlier resolution if it becomes apparent that there is overwhelming reaction against the deal.

I've also seen further details of the arguments against the deal and much of it mirrors what we have discussed so far. In particular the value destruction that will occur for current shareholders and the very expensive management and overheads the new company will need to support.

Originally I had been encouraged by the involvement of a high profile investor supporting the Crusader deal. But now I consider that high profile investors probably don't care about wiping out people like me in the process of getting richer.

[romeike] 19/9/2017 12:55

If you would like to join me as being represented on communications between the requisition shareholders and the current CEO of Stratex as opposing the deal I suggest you please urgently contact Paul Foord with your name and number of shares held. It could increase the chances of an earlier resolution if it becomes apparent that there is overwhelming reaction against the deal.

I've also seen further details of the arguments against the deal and much of it mirrors what we have discussed so far. In particular the value destruction that will occur for current shareholders and the very expensive management and overheads the new company will need to support.

Originally I had been encouraged by the involvement of a high profile investor supporting the Crusader deal. But now I consider that high profile investors probably don't care about wiping out people like me in the process of getting richer.