News blog
Stratex International
- BY: Andrew Hore |
- POSTED: 24/06/2011 |
AngloGold Ashanti is buying at 11.5% stake in gold explorer Stratex International in order to help finance exploration in Ethiopia.
Shares in Stratex rose 0.8p to 8.68p, which values the explorer at £25.9m. The shares have risen 155% over the past year.
AngloGold is investing £3m at 7.72p a share - a 10% premium on 20-day average share price. AngloGold already works with Stratex on the Megenta epithermal gold discovery.
The cash will be spent on the Afar epithermal gold province in Ethiopia and Djibouti. Stratex may decide to spin-off its Ethiopian assets in a separate company and concentrate on its Turkish exploration assets. This could help to maximise the valuation of the African assets. The spin-off could happen in the next 12 months. The plans do depend on the results of drilling at Megenta.
Inlice in Turkey should start to produce gold, and cash, in the first half of 2012.
Download the June 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFJune2011_21.pdf
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