19th Nov 2019 13:56
(Alliance News) - Oriole Resources PLC on Tuesday said its 26%-owned investee Thani Stratex Resources Ltd has secured funding for the development of its gold assets in Djibouti.
Thani Stratex has reached an agreement with its partner Onyx EX BV for funding an accelerated exploration programme in Djibouti over the next three years, to be undertaken by joint venture Thani Stratex Djibouti Ltd.
Thani Stratex Djibouti is equally owned by Thani Stratex and Onyx, a unit of Nurture Ex BV, which is in turn controlled by African Minerals Exploration & Development Fund II.
The funding has been secured from African Minerals Exploration & Development Fund III via the issue of unsecured convertible notes. The first USD2.5 million tranche of the funding will be used by Thani Stratex Djibouti to undertake an initial 6,500 metres of drilling, focused on the Pandora, Hesdaba and Assaleyta projects.
African Minerals Exploration & Development Fund II and African Minerals Exploration & Development Fund III are both controlled by Luxembourg-based private equity African Minerals Exploration & Development Funds.
West Africa-focused Oriole also said that Thani Stratex has decided to spin-out its 50% ownership of Thani Stratex Djibouti into a new private company which will be funded and managed independently.
Following the spin-off, Oriole will own 26.1% in Thani Stratex and 13.05% in Thani Stratex Djibouti.
Oriole Resources Chief Executive Tim Livesey said: "We look forward to seeing the projects in Djibouti making progress again after what has been an extended period of inactivity since early 2018. Oriole's early work on these assets, prior to the formation of Thani Stratex in 2014, showed that they are highly prospective for gold."
"As with all of the Oriole investments, we continue to monitor developments closely and will look for opportunities to realise value for our shareholders as and when appropriate," Livesey said.
Oriole shares were up 39% at 0.47 pence each in London on Tuesday afternoon.
By Tapan Panchal; [email protected]
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