11th Feb 2014 09:21
LONDON (Alliance News) - Stratex International PLC Tuesday said it has signed a purchase agreement with Aforo Resources Ltd for the Sinoe gold exploration licence in Liberia.
The gold and base metals exploration and development company, which has operations in Turkey, East Africa and West Africa, said it will undertake exploration at Aforo's Sinoe site for a minimum expenditure of AUD160,000 by July 4.
The company said it also has the option to commit an additional AUD160,000 on exploration, should intitial results be positive, or to relinquish its rights to the agreement with no further financial obligation.
Stratex said that after paying AUD320,000, the company has the option to then acquire either Aforo Resources Liberia, Aforo's subsidiary, or the Sinoe project itself by payment of a further AUD100,000.
The company also said that upon confirmation of a resource of at least 500,000 ounces of gold, or gold equivalent at the site, Stratex will pay Aforo Resources Ltd a further AUD4 per ounce of resource gold, capped at 1 million ounces of gold, in either cash of Stratex shares.
"We have monitored work on this licence for the past nine months and have decided that the results of the exploration programme, especially a soil-sampling programme, justifies us taking this step," Stratex's Chief Executive Bob foster said in a statement.
Stratex shares were down 1.4% to 3.82 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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