18th Nov 2013 09:24
LONDON (Alliance News) - Stratex International PLC Monday said it has terminated its previously announced private placement with Tembo Gold Corporation and both parties have entered a new agreement.
The company said that the previous private placement was cancelled after the minimum CAD7.0 million subscription requirement was not met.
The AIM-listed exploration and development gold and base metals miner, with operations in Turkey and Africa, said the subscription agreement was terminated by mutual agreement, and the parties have agreed to enter into a new non-brokered private placement totalling roughly CAD8.3 million.
As part of the deal, Stratex will subscribe for 17.5 million shares in Tembo for a total consideration of roughly CAD1.8 million, giving the company a 13.2% holding. Stratex can increase its holding to 23.4% on the exercise of matching warrants.
The company said that funds invested will be used on the resource definition of 100 kilometres squared worth of highly prospective licences at the Tembo gold property in Tanzania.
Stratex shares were down 1.3% to 4.32 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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