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Released 07:00 11-Feb-2014

Number 7654Z

Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining

Stratex International Plc  

(“Stratex” or “the Company”)

Expansion of Liberia Portfolio

Stratex International Plc, the AIM-quoted exploration and development company focussed on gold and base metals in Turkey, East Africa and West Africa, announces that it has signed a Purchase Agreement (the ‘Agreement’) with private Australian company Aforo Resources Limited and Aforo Resources Liberia Limited (‘Aforo Resources Liberia’ or ‘Aforo’), a wholly-owned subsidiary of Aforo Resources Limited, for their Sinoe gold exploration licence in Liberia (‘Sinoe’ or ‘the Project’).

Highlights

• Following a positive due-diligence review of historic data, Stratex has signed a definitive Purchase Agreement to undertake exploration at Aforo’s Sinoe gold project for a minimum expenditure of A$160,000 by 4^th July 2014;
• Following this Stratex has the option to commit an additional A$160,000 on exploration, should initial results be positive, or to relinquish its rights to the Agreement with no further financial penalty.
• Upon the total expenditure of A$320,000 Stratex has an option to then acquire either Aforo Resources Liberia or the Sinoe project by payment of a further A$100,000 to Aforo Resources Limited; and
• Upon confirmation of a JORC-compliant resource of at least 500,000 oz gold, or gold-equivalent, Stratex will pay Aforo Resources Limited a further A$4 per ounce of resource gold, capped at 1 million oz Au, in either cash or Stratex shares.

Commenting on the Agreement, Stratex CEO, Bob Foster, said “We have monitored work on this licence for the past nine months and have decided that the results of the exploration programme, especially a soil-sampling programme, justifies us taking this step. We already have a footprint in Liberia as a result of our joint venture with BG Minerals Limited and this has allowed us to evaluate the wider exploration potential of the country, which we rate very positively, a view shared by a number of investors and funds that we have met in London in recent months.” 

Further details

In December 2013, Stratex paid Aforo an advance of A$150,000 (‘the Loan’) in return for an exclusive period of due-diligence that included the assessment of all soil sampling results to date. 

Following successful completion of the due diligence, a Purchase Agreement has been signed, committing Stratex to spend A$320,000 (approx. £174,000) at Sinoe by 30th November 2014 to have the option to acquire either Aforo or the Sinoe project but may terminate the Agreement after expenditure of A$160,000, within the first five months of the Purchase Agreement, ending 4^th July 2014.

If the full expenditure commitment is reached, Stratex will have the option, on or before the 1st December 2014, either to purchase Aforo Resources Liberia outright or the Sinoe licence, for A$100,000.

On exercise of this option the Loan will be forgiven and Stratex will then extend the exploration programme. Should Stratex decide not to exercise its option, then half of the advance will be repaid in shares in Aforo Resources Limited.

If the work at Sinoe results in a JORC-compliant resource of at least 500,000 oz gold (or the equivalent in other metals or minerals), independently verified by a Competent Person, before the fourth anniversary of the acquisition completion date, Stratex will pay to Aforo a further A$4 per ounce of resource gold, capped at 1 million oz gold, in either cash or in Stratex ordinary shares valued at the volume-weighted average price traded during the 7 days preceding the announcement of the resource, at the sole discretion of Stratex.

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For further information please visit www.stratexinternational.com, email [email protected], or contact:

Notes to editors:

AIM-quoted (2006) Stratex International is focussed on the exploration and development of gold and high-value base-metal deposits in Turkey and East and West Africa.

It has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver and has a strong cash position following the US$20M sale of its interest in the Öksüt gold project in Turkey, and its c. US$20M future production royalties, along with the sales of Inlice and 51 per cent of its Muratdere project. Stratex has a well-developed strategy to use its strong cash balance to move it towards a sustainable cash flow position from operations.

Its focus has been to form joint-venture partnerships with local private companies and major international mining companies, such as Antofagasta and Centerra in Turkey, and Thani Ashanti in East Africa while the corporate objectives are to progress majority-owned projects towards economic evaluation and development and to take advantage of quality opportunities in the smaller exploration company sector.