9th Oct 2013 08:27
LONDON (Alliance News) - Stratex International PLC Wednesday said it has reached an agreement with Tembo Gold Corporation to participate in strategic placement of up to CAD8.7 million to develop the Tembo gold property in Tanzania.
The AIM-quoted gold and base metals exploration and development company, with operations in Turkey and Africa, said it will invest up to CAD1.7 million of the placement for an initial holding of 10.3% of Tembo, which could increase to 18.7% on the exercise of warrants.
The company said it is participating in the placement as part of an investor group, which together could control up to 60.5% of Tembo's shareholding.
Stratex said that the funding would be used to develop 100 kilometres of highly prospective licences and applications in Tanzania, including tests to define the resource opportunities in the area.
The company also said that closing the agreement is dependant on a number of conditions, including a minimum subscription of CAD7.0 million.
Stratex shares were down 1.7% to 4.30 pence in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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