About Us

Stratex is an AIM-listed company currently focusing on the exploration and development of gold and high-value base metals in Turkey, Ethiopia and Djibouti.

Formed in 2004 and listed in January 2006, the company has been positioned to take advantage of the current paucity of exploration activities and the resultant projected shortage in supply of precious and base metals. Since formation Stratex has rapidly amassed a portfolio of high-potential exploration licences in central and western Turkey, and in Ethiopia and Djibouti as a result of the Company's informed and aggressive approach to terrane analysis and prospect identification.

Stratex’s total resource currently stands at 1.17 M oz gold. The key attributes and strengths of the company are:-

• Joint venture partners NTF funding Feasibility Studies to a combined US$ 4.5 M at Inlice and Altintepe
• First gold pour from Inlice targeted end-2011
• Joint venture partners Centerra and Teck funding exploration at Öksüt and Hasançelebi respectively to a combined total of up to US$ 11 M
• Exciting new epithermal gold district discovered in the Afar depression of Ethiopia and Djibouti
• Highly experienced management team supported by top-level financial and commercial colleagues at Board level

• Highly effective operating model with a low cost base

 

Strategy and Objectives

The strategic intent of the Company is to maximize shareholder value through the continuing development of this focused portfolio. Revenues will be generated by:-

  

• Developing defined gold resources into mines via a production joint-venture agreement with Turkish civil engineering and contract mining company NTF; or

• Discovery of major new gold projects via joint-venture agreements with companies that have the technical and financial capabilities to put large resources into production. Those projects not meeting the +1 million oz gold resource requirements of major companies would be spun into the NTF JV, thus ensuring growth of the NTF-driven company into a significant gold producer; or

• Ongoing go-it-alone exploration to define new targets in Turkey, Ethiopia and Djibouti using the innovative exploration philosophies and techniques that have proved so successful to date and joint-venturing or selling resulting new discoveries to a third-party company whilst retaining a royalty payment based on future metal production.

 

Joint ventures

As part of the Company’s stated objective to minimise risk during exploration, and develop key projects towards production with companies having the appropriate technical and financial capability, the Company has now entered into the following joint-venture agreements. This strategy of de-risking key projects, both financially and technically, will allow Stratex to move forward, confident that we are managing in the best way possible a portfolio that will take us towards gold production, provide the opportunity for sharing in the considerable upside potential of key exploration projects, and allow the Company the flexibility to continue developing new exploration concepts and projects in our own right.

NTF Ä°nÅŸaat Ticaret Limited Åžirketi (‘NTF’)

On 27th April 2010, the Company announced the closure of a joint-venture production agreement with major Turkish construction and contract mining company NTF (Fig. 1) following the announcement of an initial Memorandum of Understanding (MoU) on 15 June 2009. This agreement sets out the terms under which Stratex will work with NTF to develop the Inlice and Altintepe gold projects towards feasibility and production.

Following the successful completion of the production joint venture agreement, NTF paid Stratex a purchase fee of US$1 million and now own 55 % of the new gold mining company NS Madencilik into which Inlice has already been vended and is being earned-in to by funding feasibility studies up to US$ 2million.

In parallel with the Inlice project development, NTF will continue to finance scoping and pre-feasibility studies at the Altıntepe gold project to a level of US$500,000.  Subject to the outcome of these studies, NTF will then have the option to require Stratex to put Altıntepe into the NS Madencilik joint venture under which NTF can earn an interest of up to 55% of Altıntepe by expending a further US$2 million on a full feasibility study.  SRK has already provided a review of past drilling and submitted recommendations for further drilling which is now underway, and a baseline environmental study has been underway for a period of six months under the direction of Golder Associates, an international mining consultancy.

Should NTF decide not to proceed beyond the commitment of US$500,000 to the Altıntepe scoping and pre-feasibility studies, the project will remain with Stratex.

Teck retain an underlying 1.5% Net Smelter Return (‘NSR’) royalty from any future production. A portion of the property is also held by a third party that holds a NSR royalty of 2.5 % which can be reduced to 1.25 % by a payment of US$ 750,000.

Figure 1. David Hall and Bob Foster with NTF management after closing the joint-venture production agreement

 

Centerra Exploration B.V. (‘Centerra’)

The Company signed a joint-venture agreement with North American gold mining major Centerra on 13 August 2009 for the continued exploration and development of the Öksüt project. Under the terms of the agreement Centerra can earn the right to a 50% interest in the project by funding US$3 million over three years. Centerra’s initial minimum commitment of US$500,000 has already been met. After three years they can increase their share to 70% by expending a further US$3 million over the following two years. Stratex will initially be responsible for managing the exploration programme.

Teck Cominco Arama ve Madencilik San. Tic. A.S. (‘TCAM’ or Teck’)

The Company’s long standing partnership with Teck continues with an option agreement for the advancement of the Hasançelebi project in Turkey. Under the agreement Teck is funding US$2 million to acquire a 51% interest in the project, of which a minimum committment of US$500,000 is to be expended on exploration in the first year, including 2,000 metres of drilling. Thereafter, Teck can increase its interest to 70% by expending an additional US$3 million by end-2015. Stratex will initially be responsible for managing the exploration programme.

Sheba Exploration (UK) plc (‘Sheba’)

In September 2009, Stratex partnered with Sheba to provide a footprint for the Company’s initial move into Ethiopia; Sheba is a Plus-quoted company specialising in Ethiopia. As part of the agreement the Company injected £40,000 into Sheba for a 5.6% interest in the company, together with a similar number of warrants exercisable for a period of two years. At the same time the Company entered into a binding letter of intent with Sheba to earn into the Shehagne project by committing to initial expenditure of £100,000, and thereafter an option to expend a further £250,000 to acquire 60% of the project, followed by the option to move to 80% by taking the project to completion of feasibility. The agreement also included the exploration of new prospective licence areas in northern Ethiopia on a 70:30 basis, Stratex: Sheba.