10th May 2018 16:39
LONDON (Alliance News) - Stratex International PLC said Thursday that Thani Stratex Ltd's Ethiopian licence has been cancelled.
Stratex International, a gold exploration company currently holds a 30.4% interest in Thani Stratex. It said Thani Stratex's licences in Ethiopia have not been renewed by relevant authorities.
Stratex International said its share of the predicted USD8.7 million write-off is approximately USD2.7 million with the carrying value of the its investment in Thani Stratex reduced by that amount.
"Thani Stratex had applied for a sabbatical at the licences until 2019 so that it could concentrate on its core projects in Djibouti and Egypt. However, they have since received notification that this would be outside the scope of the mining legislation and the licences have subsequently been cancelled," said Chief Executive Officer Tim Livesey.
"Whilst this cancellation and the related write-down is disappointing, the projects in Ethiopia have been non-core for Thani Stratex since it formed in 2014 and its focus continues to be on its projects in Djibouti and Egypt," Livesey added
Stratex shares closed down 15% at 0.55 pence on Thursday afternoon.
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