1st Oct 2013 09:54
LONDON (Alliance News) - Stratex International PLC Tuesday said it will be funding, operating and managing the drill programme that has just commenced at its 49%-owned Megenta gold project in the Afar region of Ethiopia, as part of an earn-back in to the 1,671 square kilometre Tendaho exclusive exploration licence from partner Thani Ashanti.
The AIM-listed gold and base metals exploration and development company said it expects to hold about 65% of the license, depending on how much it eventually spends on the drilling programme.
Once all results from the programme are in, Thani Ashanti has a once-only option to buy back to 51% of the licence by reimbursing Stratex in cash three times the total expenditure of the drill programme within 60 days of receiving all assay data and associated technical report, Stratex said in a statement.
"We are delighted by this opportunity as it enables Stratex to resume control of exploration at the Megenta project, with reimbursement of three-times the Company's costs should Thani Ashanti opt to buy-back in to the project," Stratex Director David Hall said.
The new drilling programme, which is expected to be completed within 12 months, is going to test deeper depths than shallow drilling tests have so far explored.
Stratex shares were down 1.5% at 4.80 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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