6th May 2016 07:51
LONDON (Alliance News) - Stratex International PLC on Friday said Tembo Gold Corp, in which it holds a 13% interest, has received a management cease trade order after failing to file its annual financial statements.
The order prohibits trading in Tembo securities by its chief executive and chief financial officer until it makes the required filings. Tembo plans to file its statements by June 29, Stratex said.
Stratex added that Tembo intends to undertake a non-brokered private placement of up to 20 million shares at a price of CAD0.02 each, raising up to CAD400,000 to be used for working capital purposes. This would reduce Stratex's interest in Tembo to around 11%.
In addition, Stratex CEO Bob Foster has resigned from the Tembo board in order to focus more on Stratex's other projects.
"The move to secure further financing for Tembo is sensible given the rising gold price and the consequent re-awakening interest in gold projects and gold stocks," Foster said in a statement
"Whilst retaining a significant interest in Tembo, Stratex is directing its future efforts and expenditures towards opportunities in West Africa, a region where we are particularly focused on exploration and the potential acquisition of projects," he said, adding that the company also continues to consider opportunities in Turkey and the wider region.
Shares in Stratex were trading down 10% at 2.06 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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