JOHANNESBURG (miningweekly.com) – Aim-listed Stratex International on Friday announced the completion of its agreement with Thani Ashanti, to explore and develop five gold projects on Stratex's 2 780-km² land position in Ethiopia and Djibouti.
The agreement, signed in October, included a $500 000 placement by Thani Ashanti, an AngloGold Ashanti joint-venture (JV) company, into Stratex.
The composition of the Stratex board would also be restructured to reflect the dual focus of the company.
David Hall would step down as Stratex chairperson to focus exclusively on East Africa as executive director of East Africa operations, while Christopher Hall would be appointed as nonexecutive chairperson.
David Hall noted that the Afar region in East Africa was emerging as a new gold district similar to that of the Santa Cruz gold region in southern Argentina. He said that the agreement and the placing with Thani Ashanti allowed Stratex to significantly step up the level of activity in Ethiopia and Djibouti.
“With the Megenta 3 000-m drilling programme expected to start in March 2011, the regional workload will increase markedly. We welcome Thani Ashanti as a significant shareholder in Stratex, with about 2% of the equity, and look forward to making rapid progress with the evaluation of our numerous discoveries in the Afar region,” he said.
Thani Ashanti would acquire a 5% stake in Stratex East Africa once it has expended 50% of its first-year commitment of $1-million. The company has the further option to acquire 51% of the Afar project by spending a total of $3-million on exploration and development over two years.
The company also had the ability to earn an additional 19%, which would result in a shareholding of 70%, in any one of the exclusive exploration licences, by spending another $4-million within four years.
Pursuant to the terms of the agreement, Stratex would issue about 6,52-million ordinary shares at 4,85p a share. The funds raised through the placing would be used to develop the Ethiopian and Djibouti portfolio not included in the Afar project.
Stratex also announced the issue of 2,12-million ordinary shares pursuant to the exercise of options. Application for the placing shares and option shares to be admitted to Aim had been made and admission was expected to take place on January 19, 2011.
Following the issue of the placing shares and the option shares, the total number of shares in issue would be 295,97-million ordinary shares of 1p each.