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Released 07:00 18-Nov-2013
Number 1953T
Stratex International Plc / Index: AIM / Epic: STI / Sector: Mining
Stratex International Plc -
Changes to Strategic Private Placement in Tembo Gold Corporation
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 terminated its previously announced private placement with Tembo Gold Corporation (TSXV: TEM; “Tembo”) as a result of certain conditions precedent namely the minimum subscription requirement of C$7.0 million (announcement dated 9th October 2013), having not been met. Stratex will participate in a new non-brokered private placement (the ‘Financing’) on revised terms. The gross proceeds for the Financing will be C$8.25 million. Wholly-owned subsidiary Stratex Gold AG (“Stratex” or “the Company”) will subscribe for 17,500,000 shares for C$1.75 million and will receive an equal number of warrants.
Highlights
Commenting on the proposed investment Stratex Chairman Christopher Hall said “Unfortunately, the previous agreement was terminated due to the minimum subscription requirement of C$7.0 million not being met by the due date. The Investor Group, consisting of Stratex, the New Africa Mining Fund II and Concept Capital, were willing to make up this shortfall, provided the terms were improved. Consequently Stratex will now be subscribing for 17.5 million shares at the reduced price of C$0.10 per share, resulting in an initial holding which is increased to 13.2%.
An indirect advantage of the delay and renegotiation is that regulatory approval for aspects of the transaction have been received and the need for Subscription Receipts, which would convert into shares, has fallen away.
We understand that closing will now be subject only to shareholder consent, which we are confident will be forthcoming, and that we will be able to announce the completion of the transaction, appointment of our nominees to the board and the recommencement of focussed exploration activity without further delay.”
Further details are set out in the Tembo press release that can be accessed on Tembo’s SEDAR profile at www.sedar.com.
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For further information please visit www.stratexinternational.com, email [email protected], or contact:
Stratex International Plc |
Tel: +44 (0)20 7830 9650 |
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Bob Foster / Christopher Hall / Claire Bay |
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Grant Thornton UK LLP |
Tel: +44 (0)20 7383 5100 |
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Philip Secrett / Melanie Frean / Jen Clarke |
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Northland Capital Partners Limited |
Tel: +44 (0)20 7796 8800 |
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Gavin Burnell / Luke Cairns / Alice Lane /John Howes |
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SP Angel Corporate Finance LLP |
Tel: +44 (0)20 3463 2260 |
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Ewan Leggat / Tercel Moore
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Yellow Jersey PR Limited |
Tel: +44 (0)20 3664 4087 |
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Dominic Barretto / Philip Ranger / Anna Legge |
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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 45 and 51 per cent of its Inlice and Muratdere project, respectively. Stratex has a well-developed strategy to use its 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.
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