25th Feb 2016 09:20
LONDON (Alliance News) - AIM-listed Stratex International PLC on Thursday said that Thani Stratex Resources Ltd, in which it previously invested USD1.0 million for a 40% stake, has secured USD1.3 million of new funding through a "non-repayable and interest-free" convertible loan from NurtureEx BV.
The new funds will allow Thani Stratex to proceed with an initial drill programme on its licence areas in the Republic of Djibouti, the company said.
NurtureEx has the right to fund a further USD1.3 million for an additional 4,000 metre drilling programme. If it takes up that right, its total investment would convert into a 50% interest in Thani Stratex's wholly-owned local entity, Thani Stratex Djibouti, that holds the concessions.
However, if NurtureEx decides not to take up its right to provide further funding, it will have the option to convert its initial investment into Thani Stratex shares at USD2.0 per share.
As part of the funding exercise, Stratex International and Thani have both agreed to capitalise amounts owed to them by Thani Stratex.
As a result, Stratex International's interest has now been reduced to 38.4% from 40%. Should NurtureEx decide not to take up its right for further funding, and instead convert its initial investment into Thani Stratex shares, Stratex's holding will be further diluted to 34.5%.
"We are delighted that Thani Stratex has secured this investment which highlights the quality of the Djibouti targets, even in this depressed market. New gold districts, not just new gold projects, are required for the future of the mining industry and Thani Stratex is at the forefront of this exploration with its strategic land package in the Afar Epithermal Province," Christopher Hall, Stratex International's chairman and representative on the Thani Stratex board, said.
"Success in Djibouti will transform the upside potential for Thani Stratex in the region, where it retains full control of the rest of its highly prospective licences. We look forward to updating the market on its progress in due course," Hall added.
Shares in Stratex International were up 3.7% at 1.97 pence Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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