12th May 2014 12:08
LONDON (Alliance News) - Stratex International PLC Monday said it intends to form a new company for its East African assets, in partnership with UAE-based Thani Emirates Resources Holdings.
In a statement, Stratex said the new company will be the partners' exclusive vehicle for growth in the Arabian Nubian Shield and Afar region.
Stratex and Thani will each contribute USD1.0 million of initial working capital and may seek third-party investment in the future.
The AIM-listed exploration and development company, which focuses on gold and high-value base metals in Turkey, East Africa and West Africa, said the new company will be in a "strong position" to consider consolidation of other assets in the region.
Additional expansion capital will be sought by the new company in due course, according to Stratex.
"We believe that, with the complementary skills of each partner, namely Stratex's technical expertise in exploration and the regional influence of Thani, this new company will provide the mechanism for achieving the new company's strategic objective to become one of the leading mineral resource developers in the region," David Hall, executive director, said in a statement.
"The new company will initially focus on drilling the Pandora epithermal system in Djibouti as well as advancing key projects in Egypt that show potential for large Sukari-like gold deposits, as well as a range of other deposit-types with large-scale gold and copper potential. The partnership will continue to develop projects within the portfolio and has already identified other opportunities in the region that warrant further investigation. An evaluation process of these opportunities is currently in progress," Hall added.
Stratex shares were Monday quoted at 3.12 pence, up 1.6%.
By Samuel Agini; [email protected]; @samuelagini
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