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Released 07:00 18-Apr-2013
Number 6281C07 

Stratex International Plc

("Stratex" or the "Company")

Inlice Update - Sale Proceeds Received 

Stratex, the AIM quoted gold exploration and development company, focused on gold and base metals in Turkey, East Africa and West Africa, is pleased to announce that further to the announcement of 21 March 2013, payment has been received following the sale of the Inlice Project ("Inlice" or "the Project") in Turkey.

Highlights

• US$4.5 million received following sale of Inlice
• Proceeds to be approximately US$3.75 million after tax and interest
• Current cash position of approximately £17.5 million to facilitate acquisition of advanced projects

CEO Dr Bob Foster commented: "The successful conclusion of the sale of Inlice, and the realisation of the resulting net proceeds, puts Stratex in a commanding position going forward. We will be advancing our existing exploration programmes as well as seeking to acquire more advanced projects that may be at the drill-ready stage or even possess identified resources. Such projects would allow us to add significant value rapidly by further drilling and the completion of appropriate technical studies before seeking a partner to take the project(s) to production or a sale."

Sale of Inlice

Following the agreement by joint-venture ("JV") partner NTF İnşaat Ticaret Limited Şirketi ("NTF") to sell the Inlice operating licence for US$10 million, the Company confirms receipt of US$4.5 million, representing  its 45% shareholding in the JV company N.S. Madencilik Sanayi ve Ticaret AS ("NSM"). The sole asset of NSM is İnlice Madencilik Ticaret ve Sanayi A.S. ("IM"), the owner of the Inlice licence and project. NSM will now be liquidated and the net assets distributed to the JV partners. As this process could take many months to complete, the cash from the sale of the Inlice licence has been paid by NSM to NTF and Stratex as a loan, pending completion of the liquidation. The Company has made provision for its share of the eventual payment of taxes and interest amounting to approximately US$0.8 million.

Together with the proceeds of the recently announced sale of 30% of the Öksüt project (US$20 million cash plus a royalty on future production of an additional US$20 million), and the proceeds of US$1.7 million from the sale of 51% of the Muratdere project, the Company now has a cash balance of approximately £17.5 million and believes it is well-placed to advance its existing exploration programmes and is also seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources. The Company also anticipates net cash flow from the Altıntepe project in Turkey during 2014.

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

Notes to editors:

Stratex International is a well-funded AIM-quoted exploration and development company focussed on gold and high-value base metals in Turkey, East Africa and West Africa. Since listing on AIM in 2006, Stratex has had an impressive track record of successful exploration supported by joint-venture partnerships, both with major international mining companies and local companies to maximise the potential of its discoveries. 

In December 2012 the Company announced the sale of its 30% interest in the Öksüt gold project for cash of 20 times its original US$1 million investment and retained a royalty of 1% up to a maximum additional value of US$20 million.

It currently has a substantial portfolio of projects, with Altıntepe in Turkey scheduled for gold production in late 2013 or Q1 2014. To date Stratex has discovered more than 2.2 million ounces of gold and 7.9 million ounces of silver, as well as 186,000 tonnes of copper. As at April 2013, the Company has a cash balance of approximately £17.5 million and is therefore well-placed to advance its existing exploration programmes and also seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources.