Stratex International PLC Hasan ebi and Dogala Exploration Agreement (9383E)

TIDMSTI

RNS Number : 9383E

Stratex International PLC

15 February 2018

15 February 2018

Stratex International Plc

('Stratex' or 'the Company')

Hasançelebi and Dogala Exploration Agreement

Stratex, the AIM-quoted gold-focused exploration and development company in Turkey and Africa, is pleased to provide an update on its Hasançelebi and Do ala gold projects in Turkey (together the 'Projects'), following the signing of an exploration agreement (the 'Agreement') with a local private company, TET Madencilik Ltd. ti. ('TET').

Highlights

- Agreement to transfer Hasançelebi and Do ala Exclusive Exploration Licences (the 'Licences') to TET;

   -     TET to pay Stratex US$50,000 within one week of signing the Agreement; 

- TET to spend up to US$1.5 million on exploration and drilling at the Projects within two years ('the Exploration Period')

   -     Stratex to manage the exploration and drilling programmes; 

- TET to pay Stratex US$500,000 success fee (in cash) if minimum JORC-compliant Measured or Indicated resource of 100,000 oz gold (at 0.3 g/t Au cut off) is confirmed within oxide and transition material at Hasançelebi within the Exploration Period;

- Stratex to receive a 1.5% net smelter returns ('NSR') royalty on any future precious metals production at the Licences, and a 5% NSR royalty on the future production of any other metals or industrial raw minerals.

Dr Bob Foster, Interim CEO of Stratex, commented:

"We are delighted to have signed this agreement with TET that will enable us to start realising value for shareholders imminently from the Hasançelebi and Do ala projects. As outlined in our recent strategy update, realising value from our existing portfolio is a key focus for the Company, and the licence transfer of these dormant, non-core projects is one that benefits all stakeholders. Whilst the projects have been non-core to Stratex's portfolio over the last few years, the drilling to date at Hasançelebi, through a former joint venture with Teck, has demonstrated the potential for low-grade, high-tonnage gold mineralisation. This agreement allows us to share in any upside potential that might be realised, through a success-based payment and a royalty on future production. It will also significantly reduce the Company's operational overheads in Turkey through the transfer of licencing and staffing costs to TET.

The Board continues to look at a number of flagship projects that could provide the next phase of growth to Stratex, whilst also remaining focused on near-term ways in which we can deliver value to shareholders from our existing portfolio."

Further Details

Stratex Madencilik Sanayi ve Ticaret Limited irketi ('Stratex Madencilik'), the Company's wholly-owned Turkish subsidiary, has signed an Agreement with TET for the exploration of its Hasançelebi and Do ala projects in Turkey.

Under the terms of the Agreement, TET will pay Stratex US$50,000 within one week of signing the Agreement, and Stratex will immediately start the procedure to transfer the Licences to TET.

TET will budget up to US$1.5 million for exploration ('Exploration Budget') at the Projects within a two-year Exploration Period, and Stratex Madencilik will manage the exploration and drilling programmes. At the end of the Exploration Period, if a minimum JORC-compliant indicated or measured gold resource of 100,000 oz, (with a 0.3 g/t cut off) is defined within the oxide and transition zones ('Minimum Resource Threshold'), and is amenable to surface mining techniques then, provided that metallurgical testwork and Environmental Impact Assessment (EIA) results are positive and that a decision is made to proceed to mining (the 'Operation Phase'), TET shall pay US$500,000 in cash to Stratex Madencilik. If the Minimum Resource Threshold is achieved by spending less than the Exploration Budget, then the Operation Phase for Hasançelebi shall commence and the remaining funds from the Exploration Budget shall be used for exploration activities at Do ala.

Stratex will also receive a 1.5% NSR royalty on any future precious metals production at the Licences, and a 5% NSR on any future production of other metals or industrial raw minerals.

If TET does not start investing to proceed to the Operation Phase within two years following expiration of Exploration Period on Hasançelebi, even though the Minimum Resource Threshold is achieved within the Exploration Period, then the Licences will revert to Stratex Madencilik.

The Projects have no carrying value in the Company's balance sheet as at 30 June 2017 and the Company incurred approximately GBP45,000 of expenditure on the Projects in the year to 31 December 2016.

Project Information

At Hasançelebi, approximately 500 km SE of Ankara, high-sulphidation mineralisation is lithologically-controlled over a strike length of approx. 7 km. Drilling to date, through a joint-venture with Teck Resources Limited ('Teck'), has demonstrated the potential for low-grade, high-tonnage gold mineralisation extending over a distance of between 1,000m and 2,000m, and vertical continuity of the system is confirmed down to 300m in some areas. Best results from Phase 1 drilling include 15.35m @ 1.35 g/t Au from 266.20m , 13.80m @ 0.93 g/t Au from 24.40m and 6.90m @ 0.98 g/t Au from 37.60m (Announcement dated 26 October 2010). The drilling also highlighted the potential for copper mineralisation, with best reported grades of up to 0.38% (and 0.63 g/t Au) over 20.70 m from 206.90m for the Karakaya Tepe zone located near the eastern end of the main Hasançelebi system and believed to be an iron oxide-copper-gold occurrence. During Phase 2 drilling in 2011/12, further drilling (two holes) at Karakaya Tepe returned best intersections of 28.00 m @ 0.30 g/t Au from 61.00m and 40.80m @ 0.69 g/t Au from 292.90m from hole HCD-11 (Announcement dated 12 March 2012).

Do ala, located approximately 225 km to the west of Hasançelebi, is a grass roots exploration project, prospective for high-sulphidation gold mineralisation. Diamond drilling (two holes) to date through a joint venture with Centerra Gold Limited identified the occurrence of gold in the system, although no results have been reported.

** 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,

or contact:

 
 Stratex International    Tel: +44 (0)20 
  Plc                      830 9650 
 Bob Foster / Claire 
  Bay 
 
 Camarco (IR/PR           Tel: +44 (0)20 
  Contact)                 3757 4980 
 Gordon Poole / 
  Nick Hennis / Monique 
  Perks 
 
 Grant Thornton           Tel: +44 (0)20 
  UK LLP                   7383 5100 
 Samantha Harrison 
 Hannam & Partners        Tel: +44 (0)20 
                           7907 8500 
 Neil Passmore / 
  Andrew Chubb 
 
 

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 an exciting exploration project in Senegal and 14.87% of a copper-gold project at feasibility stage in Turkey, which will likely default to a 1.2% (post-Turkish tax) royalty position within the next 3 months. 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. The Company is currently pursuing value-accretive opportunities within its existing portfolio as well as identifying new value-appropriate projects in Africa and Europe.

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGREAAALFLXPEAF

(END) Dow Jones Newswires

February 15, 2018 02:00 ET (07:00 GMT)