TIDMSTI
RNS Number : 5684D
Stratex International PLC
01 February 2018
Stratex International Plc
('Stratex' or 'the Company')
Corporate Strategy, Proposed Appointment of CEO
and Project Update
Stratex, the AIM-quoted gold-focused exploration and development
company in Turkey and Africa, provides a project update and outline
of its corporate strategy and announces the proposed appointment of
a new CEO.
Highlights
- Stratex has completed its review on its existing assets;
- Proposed appointment of new CEO, Tim Livesey, to commence 1 March 2018;
- Stratex is currently identifying new value-appropriate projects in Africa and Europe.
Dr Bob Foster, Interim CEO of Stratex, commented:
"Following last year's requisition, it has been necessary to
reassess the Company from the bottom up in order to provide a
stable platform on which to grow. Following meetings with our
shareholders, we will be adopting a new and revised policy whereby
the Company will ensure that all new opportunities are measured to
strict financial and strategic criteria including a focus on
jurisdictions that are more aligned with the Company's current
geographic focus.
Our first priority has been to evaluate projects within our
existing portfolio where we recognise inherent value. As part of
this evaluation, we are concluding negotiations with a likely joint
venture partner for our Dalafin gold project in Senegal that we
hope will be finalised during Q1. The team has also been busy
identifying a number of opportunities that could provide a flagship
project on which to grow the Company, and discussions are underway
with a select number of interested parties.
We are also delighted to announce the upcoming appointment of
our new CEO, Tim Livesey, who will join the Company on 1 March 2018
(subject to the standard regulatory due-diligence). I will continue
to be available as a consultant to the Company as required in order
to provide continuity. Tim has extensive experience advancing
projects across the entire development and value chain,
specifically in delivering significant value to shareholders. We
believe Tim is the ideal person to continue re-establishing the
value in Stratex and executing its growth objectives. We look
forward to welcoming him on board next month."
Tim Livesey, commented:
"I am pleased to be joining the team at Stratex International,
having watched the Company since its inception. I am confident
Stratex provides a firm base for growth and I welcome the
opportunity to play a role in its continued development, alongside
Bob, Claire and the rest of the team."
Strategic Vision
In 2014, the Company stated its intention to acquire one or more
advanced assets to complement its then early-stage portfolio. One
potential opportunity was the proposed acquisition of Crusader
Resources Limited ("Crusader") in mid-2017. This particular
proposal was rejected by the shareholders during the latter half of
2017.
The Board still considers the acquisition of more advanced
assets as a valuable way of growing its portfolio quickly, as
opposed to acquiring only very early-stage opportunities, where the
risk of exploration success is often higher and the time period
from discovery to resource is longer. However, the Company
acknowledges that its shareholders deemed the proposed Crusader
acquisition terms too dilutive and that any future project or
corporate level transaction would need to reflect this. Further,
following consultation with a number of our shareholders, we note
their preference for the Company to maintain its current
geographical focus in Africa and Europe.
Towards the end of last year the market began to see an
increased amount of new capital from investors for earlier-stage
projects. This presents a valuable opportunity for Stratex, and as
such, the Company is in a position to consider a wider range of
assets, including those that are at an earlier stage of
exploration. To this end, the Company has identified and
shortlisted several priority targets that could offer growth
opportunities for the Company, and has initiated discussions with a
number of asset owners.
In addition, the Company has been actively assessing
value-accretive opportunities within our existing portfolio, as
discussed further in the Project Update below.
Over the next 6-12 months, the Board's strategy is to maximise
shareholder value through the following activities:
- Fast-track exploration at Dalafin and reduce Stratex's
financial exposure through the conclusion of a joint-venture
arrangement to bring in third party funding and additional
expertise;
- Earn-in or acquire interest in new projects where
mineralisation has already been identified but where we can add
value quickly through focussed exploration, resource definition or
expansion and progressive technical and economic studies;
- Continue to monitor its investments in other companies and
support further exploration as appropriate;
- Continue with the realisation of value from existing lower
priority projects which are converting to royalty arrangements.
Proposed CEO appointment
We are delighted to announce that the Stratex board has resolved
to appoint Tim Livesey as CEO of the Company (subject to the
standard regulatory due diligence). Tim has stated that he will be
available to accept the appointment commencing on 1 March 2018. In
the interim, Tim will work alongside the team as a technical
consultant. Tim has 28 years' experience in gold and base metals,
with a distinct focus on Africa, Europe and Asia. He has worked at
all stages of exploration, development and mining, and has a strong
track record of delivery, both at the technical and commercial
level within previous positions. Some of his more notable roles to
date include exploration manager (Eurasia), Barrick Gold Corp.,
project director and later CEO of Tethyan Copper Company Pty Ltd (a
Joint Venture between Antofagasta Minerals and Barrick Gold Corp,
owner of the Reko Diq project in Pakistan), and more recently as
COO of TSX.V-listed Reservoir Minerals Inc., which was sold in June
2016 to TSX-listed Nevsun Resources Ltd for US$365 million. Tim is
well known to both the technical and internal team at the
Company.
Upon Tim Livesey's appointment, Dr Bob Foster will stand down
from the Board, where he has been fulfilling the role of Interim
CEO. Bob will continue to support the Company as required as a
consultant and provide continuity on the strategic review he has
conducted with the Stratex team in the last few months. There are
no other immediate changes to the Board planned at this time, but
the Company places significant emphasis on succession planning,
which continues to be under review.
Projects Update
Dalafin (85%)
At the Dalafin gold project in Senegal, we are pleased to
announce that discussions regarding joint-venture financing, as
announced on 21 December 2017, are advancing well with our
identified partner and that the Board hopes to conclude the deal
before the end of the quarter. We will provide a further update on
this in due course.
Thani Stratex Resources (currently 30.1%, increasing to
30.4%)
In Q4 last year, the Company visited the gold assets of Thani
Stratex Resources ("TSR") as part of its wider assessment of the
Group's portfolio (Announcement dated 21 December 2017) and the
findings, which have been presented to TSR, are summarised
below.
Djibouti (Stratex net interest 15%, increasing to 15.2%)
At the Company's former Pandora epithermal gold project in
Djibouti, TSR (50%-owner) are undertaking Phase 2 drilling for a
planned 3,000 m. The aim of this drilling is to test the
depth-extension of previously drilled mineralisation and identify
potential higher-grade ore shoots within the system that is
believed could lead to the definition of a resource. TSR has
recently announced results from the first 5 holes of this programme
(OK-DD-16 to OK-DD-20) with results (recalculated by Stratex using
a 0.2 g/t Au cut-off) of up to:
-- 20.17 m @ 1.16 g.t Au (from 4.23 m in hole OK-DD-17);
-- 11.83 m @ 0.82 g/t Au (from 67.17 m in hole OK-DD-19); and
-- 16.80 m @ 1.47 g/t Au (from 94.30 m in hole OK-DD-20).
Stratex has agreed to support completion of the current
programme for an additional US$200,000, alongside further funding
of US$300,000 by Thani Emirates Resources Holdings ("Thani
Emirates") to be invested as equity in TSR (further details below).
Further details on the ongoing drilling programme at Pandora,
including JORC Table 1 disclosure, can be found at
http://thanistratex.com/news/. The Stratex board will await full
results of this programme before making a decision on whether to
support further exploration.
At Assaleyta, also in Djibouti, TSR (50%-owner) completed an
initial 5-hole drilling programme in 2016 across 3 key zones.
Following up on good outcrop sample results, further drilling is
required to define the extent and mineral potential of the
system.
In its announcement today, TSR has highlighted its intention to
spin-off its Djibouti portfolio as a separate entity, seeking
exposure to public markets. We await further details on their plans
in this regard.
Egypt (Stratex net interest 30.1%, increasing to 30.4%)
In Egypt, TSR (100%-owner) is focused on advancing the Anbat
project, where it has recently announced a maiden Mineral Resource
Estimate of 209,000 oz at 1.11 g/t Au within porphyry sills
(Announcements dated 6 and 13 December 2017). Porphyry-hosted
mineralisation is generally well-constrained by flat-lying porphyry
units but the geometry of these sills is yet to be fully resolved
and will need to be addressed before any future resource estimation
is undertaken.
Potential upside has also been highlighted within the
granodiorite, where an Exploration Target of 100-800Kt @ 0.7-1.5
g/t Au[1] has been disclosed previously. More drilling is required
to ascertain whether there is any potential for a larger open-pit
resource. TSR is currently reviewing its exploration programme at
Anbat and other projects within TSR's Egypt portfolio.
[1] This potential quantity and grade is conceptual in nature
and is not a Mineral Resource because there has, to date, been
insufficient exploration completed with which to support the
preparation of a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
Muratdere (Stratex 14.87%)
At the Muratdere gold project in Turkey, Stratex's joint-venture
partner, Lodos Maden Yatırım Sanayii ve Ticaret A. . ("Lodos"), is
committed to ongoing expenditure during 2018, with a focus on
developing the Environmental Impact Assessment programme. As noted
in Stratex's announcement on 21 December 2017, Stratex continued to
re-consider its options during 2017, in light of the currently
stronger outlook for copper (having previously notified Lodos in
2016 that Stratex would not be committing further funds). Following
this consideration, the Stratex Board has confirmed that it is not
changing its previous position and will focus its efforts and
finances on finding a flagship project where it has management
and/or shareholder control. Consequently, and as previously
expected, the Company anticipates being diluted to below 10% within
the next 3 months, which will trigger dilution to a royalty
position of 1.2% (post-Turkish tax).
Further details of the TSR investment
As noted above, Stratex and Thani Emirates have agreed to
subscribe for a total of US$500,000 of new equity in TSR, split
US$200,000 and US$300,000 respectively. The funds will be invested
in two tranches, the first (US$120,000 Stratex, US$180,000 Thani
Emirates) by 20 February 2018 and the second (US$80,000 Stratex,
US$120,000 Thani Emirates) by 20 March 2018.
Immediately following the second tranche of the subscription,
Stratex's holding in TSR will increase from 30.1% to 30.4%. The
funds will be used by TSR to complete the Phase 2 drilling at TSR's
Pandora gold project in Djibouti.
Stratex's share of TSR's loss for the year ended 31 December
2017 was approximately GBP141,000, (2016: GBP161,000) 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.
** 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.
[1] This potential quantity and grade is conceptual in nature
and is not a Mineral Resource because there has, to date, been
insufficient exploration
completed with which to support the preparation of a Mineral
Resource and it is uncertain if further exploration will result in
the estimation of a Mineral Resource.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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