News & Analysis

Stratex plc (STI: AIM) review and analysis

By PSQ Analytics

Stratex plc (STI) is an international exploration and development company focused on finding and developing high-value mineral resours foces, primarily gold, copper, molybdenum, nickel and zinc. The firm waunded in 2004 and admitted to AIM in 2006.

- Gold: In its own right and via an agreement with Teck Cominco Ltd., Stratex has identified a number of gold prospects in central and western Turkey. As of the close of its December 2008 fiscal year, the company had a portfolio of 11 license blocks in Turkey covering 1,724 km with declared gold resources exceeding 1 mn oz.

- Filling the Portfolio: Stratex is developing projects throughout its development area. During 2008, the company advanced Altintepe and Inlice projects to the resource definition stage. The company also discovered and acquired the 75.5 sq. km Oksut license area, one of a number of discoveries in new belts of gold mineralisation that it has identified in central Turkey.

- Working with partners: During the interim period ended 30 June 2009, Stratex signed an MOU with major Turkish contract mining company NTF Insaat Ticaret Ltd. (“NTF”) to form a 55:45 joint venture company. The JV intends to fast-track development of the Altintepe and Inlice gold projects into production within 36 and 18 months, respectively. Additionally, Stratex signed option/JV agreements with Centerra Gold Inc. to advance the Oksut gold project and with Teck Resources Limited to explore and drill the Hasancelebi prospect. Centerra has the option to fund USD6 mn to acquire a 70% interest in Oksut and Teck can spend USD5 mn to acquire 70% of Hasanecelebi.

Key recent news

3 February 2010: Announced the formal signing of a Definitive Agreement with private Turkish company NTF Insaat Ticaret Ltd Sti (NTF) following the MOU announced in June 2009. The agreement sets out the terms whereby NTF will work with Stratex to develop the Inlice and Altintepe gold projects. Upon closure, NTF will pay Stratex USD1 mn immediately; thereafter, NTF will fund feasibility studies up to an amount of USD2 mn prior to moving to production.

30 November 2009: First discovery of epithermal gold mineralization and acquisition of extensive licence area over multiple areas of interest in Ethiopia’s Rift Valley.