JOHANNESBURG (miningweekly.com) – Aim-quoted Stratex has signed an exploration agreement with a local Turkish company TET Madencilik (TET), which has committed to spend up to $1.5-million on exploration and drilling at the Hasançelebi and Doğala projects in the next two years.
The projects have been noncore to Stratex’s portfolio over the last few years and interim CEO Bob Foster said on Thursday that the agreement with TET would allow the company to start realising value for shareholders.
TET has agreed to pay Stratex $50 000 within one week of singing the agreement and has committed to spending $1.5-million on exploration and drilling, the programmes of which the London-listed company will manage.
Should a Joint Ore Reserve Committee-compliant measured and indicated resource of 100 000 oz, at 0.3 g/t gold, be confirmed in oxide and transitional material at Hasançelebi, TET will pay Stratex a success fee of $500 000.
Stratex will also receive a 15% net smelter returns (NSR) royalty on any future precious metals production at the licences and a 5% NSR royalty on future production of any other metals or industrial minerals.
“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, noncore projects is one that benefits all stakeholders.
“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 licensing and staffing costs to TET,” said Foster, who will be succeeded by Tim Livesey next month.
On February 1, Stratex announced the appointment of Livesey and outlined its future strategy, after the failed takeover bid of Crusader Resources last year.