12th Jun 2018 11:44
LONDON (Alliance News) - Gold-focused exploration company Stratex International PLC said on Tuesday it has entered an option agreement with Bureau d'Etudes et d'Investigations Geologico-minieres, Geotechniques et Geophysiques SARL (BEIG3) over two gold exploration projects in Cameroon, a deal it will support with an equity fundraising.
The option agreement is for the earn-up to a 90% interest in the Bibemi and Wapouze projects in north Cameroon.
Stratex will be able to earn a 51% interest in both projects by funding USD1.6 million toward exploration for two years. Following that, the London-listed company can earn another 39% by funding another USD1.6 million over another two years.
During the agreement, Stratex will manage the project and BEIG3 will provide operational and logistics support.
To advance the option agreement, Stratex intends to raise equity in the range of GBP1.0 million to GBP1.3 million, through the issue of up to 250.0 million shares at an expected price of 0.5 pence per share.
Shares in Stratex were down 16% at 0.55 pence on Tuesday.
The placing is being conducted through an accelerated bookbuild, for which Turner Pope Investments is acting as sole bookrunner.
"We are delighted to have entered into this option agreement with BEIG3 for what are exciting early-stage exploration targets in Cameroon. BEIG3 formerly held the projects in a JV with TSX-quoted Reservoir Minerals Inc, of which I was COO until 2016 when it was sold to Nevsun, but these have recently been returned 100% to BEIG3 and so we look forward to picking-up where Reservoir left off. This earn-in to early-stage projects in West Africa is wholly in line with the company's stated strategy, outlined earlier this year, and entirely complements management's regional expertise and experience," said Chief Executive Officer Tim Livesey.