Stratex International Acquires 49.9% Shareholding in Rift Resources to Provide Exposure to Ethiopian Potash

(HornTrade) – Stratex International plc, the AIM-quoted exploration and development company focussed on gold and base metals in Turkey and East Africa, announces it has acquired a 49.9% holding in newly-formed potash-focused exploration company Rift Resources plc (‘Rift Resources’) after ongoing exploration in the Afar region of Ethiopia has highlighted the prospectivity for the commodity.

Highlights

·        New 500 sq kmpotash licence in the prospective Afar region of Ethiopia – licence to be assigned to newly-formed company Rift Resources

·        Rift Resources aims to increase its exposure to potash and other industrial minerals in Ethiopia and the wider region with a view to listing in due course

Stratex Chairman Christopher Hall said, “Although Stratex’s focus remains solely on precious and base metal exploration, we have been opportunistic in acquiring a licence in Ethiopia that is prospective for potash, a commodity that is primarily used as a source of potassium fertiliser. This 500 sq km asset is being transferred to Rift Resources with Stratex acquiring 49.9% of that company, post a fundraising. Stratex shareholders will gain significant equity exposure to this exciting opportunity without any risk, financial exposure or dilution at plc level as a result of funding non-core exploration”.

Further Information

During its ongoing programme of gold exploration licence acquisition in the Afar region of Ethiopia, Stratex became aware that it was operating in an area which is also highly prospective for potash. In line with this, the Company has been awarded, a potash and associated minerals exploration licence covering 500 sq km and, in order to retain its focus on gold exploration, Stratex has agreed to assign the licence to Rift Resources, a newly-formed potash-focused exploration company for a cash consideration equal to the original cost of the licence. Stratex has been allotted and issued 19,999,999 ordinary shares in Rift Resources representing 49.9% of its share capital, as enlarged by a fundraising of £250,000. The Board of Rift Resources has sourced this investment of £250,000 to advance the initial licence and to provide working capital for its development, including the acquisition of additional exploration licences.

Going forward, Rift Resources will seek to increase its exposure to potash and other industrial minerals in Ethiopia and the region and it is intended that Rift Resources shall seek a flotation on a stock exchange in due course.

Stratex Board members, consultants and employees have subscribed for a total of 8,000,000 shares in Rift Resources at nominal value as recognition that they will be spending personal time on an unpaid basis on Rift Resources’ business until suitable replacement members of staff are found.

Following consummation of the agreement for Stratex to assign the licence to Rift Resources and the £250,000 third party investment in to Rift Resources plc, Christopher Hall and David Hall, both Directors of the Company, have been appointed to the Board of Rift Resources as non-executive Chairman and non-executive Director respectively, to represent the interests of Stratex International until suitable full-time board replacements are sourced to manage the operation.

Notes to editors:

Stratex International Plc is an AIM-quoted exploration and development company focussing on gold and base metal opportunities in Turkey, Ethiopia and Djibouti.

Stratex – Turkey Portfolio

In Turkey, Stratex is moving to gold production at the Inlice project through its partnership with its Turkish partner NTF, with initial production targeted by H1 2012. Subject to on-going discussions with another Turkish company, Alt?ntepe is also targeted to go into production by 2013, subject to outcome of scoping and feasibility studies.  The Company also remains focussed on discovering and developing new projects through low-cost exploration, adding maximum value prior to optioning/joint venturing or selling on to a dedicated mining company.

  • Total resources stand at 1.53 million oz of gold (combined oxide and sulphide gold) and approximately 7.1 million oz of silver, on a JV-inclusive basis
  • Partnership with NTF, a technically capable Turkish company, to rapidly develop the 59,600 oz gold reserve present at the Inlice project
  • An option/joint venture agreement with Centerra Exploration B.V., a wholly owned subsidiary of Centerra Gold Inc., to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia
  • A further option/joint venture agreement with Centerra Exploration B.V. to explore the multiple high-sulphidation alteration zones of the Altunhisar project in Central Anatolia
  • An option/joint venture agreement over the Hasancelebi project, a high-sulphidation gold project in central Turkey with Teck Madencilik Sanayi Ticaret A.S., a Turkish subsidiary of Teck Resources Limited of Canada, a major shareholder in Stratex
  • An option/joint venture agreement with private Turkish company Aydeniz Group to explore and develop the Muratdere porphyry copper-gold-molybdenum deposit in western Turkey
  • Exploration agreement with Antofagasta to explore Turkey for porphyry copper and other copper deposit-types that will be vested into an established JV

 

Stratex East Africa Ltd (‘SEA’) – Ethiopia and Djibouti Portfolio

  • A joint venture with Centamin Egypt Limited (which recently acquired Sheba Exploration (UK) plc) to (i) earn-in to an initial 60% of the prospective 37 sq km Shehagne gold project in Ethiopia, and (ii) explore targets in northern Ethiopia on a 70:30 joint venture basis
  • Berahale and Gademsa EEL’s cover a combined area of 1,225 sq km in northern and central Ethiopia respectively and are prospective for gold and base metals
  • Multiple low-sulphidation vein systems recently discovered in the Blackrock EEL with bonanza gold values up to 34.6 g/t Au and 60.4 g/t in outcrop
  • 3,853 sq km land position over new epithermal gold discovery and multiple related gold targets in the Afar Depression of eastern Ethiopia and Djibouti
  • Stratex International has signed a binding Heads of Agreement with Thani Ashanti, an AngloGold Ashanti Limited joint venture company, to fast-track development of first 11 prospects identified within the Afar Depression (collectively the ‘Afar Project’). Thani Ashanti can earn 51% of the Afar Project by spending US$3 million on exploration and development over two years. Recent results from the scout drilling programme at Megenta have confirmed epithermal gold mineralization

Source: mineweb.com

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