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Stratex has concluded an option earn-in agreement with AGEM Senegal Exploration, a wholly-owned subsidiary of IAMGOLD Corporation, in respect of the Dalafin gold project in Senegal.

Stratex EMC SA, the company’s 85%-owned Senegalese subsidiary, has entered into the Agreement with AGEM.

Under the terms of the agreement:

  • AGEM will have the right to acquire an initial 51% interest in Dalafin by expending US$4 million over four years at the project, potentially diluting Stratex’s interest to approximately 41.65%
  • Subject to the first option being exercised by AGEM, AGEM and Stratex EMC may agree to form a joint-venture company for the management of Dalafin
  • AGEM has the option to increase its interest by a further 19%, to 70%, by expending a further $4 million at the project over the subsequent two years, potentially diluting Stratex’s interest to approximately 25.5%
  • Thereafter, AGEM and Stratex EMC will be required to contribute on a pro rata basis towards the project, or will be diluted. Should either party be diluted below 10%, their interest will convert to a 2% Net Smelter Returns royalty on production from Dalafin, of which AGEM will retain the right to buy-back 0.5% of the Royalty for consideration of $0.5 million

Subject to governmental approval in Senegal

IAMGOLD will focus the exploration work initially on the Madina Bafé prospect which is contiguous with IAMGOLD’s Boto gold project, where they have defined Indicated and Inferred Resources of 2.52 million ounces grading 1.61 g/t Au.

“Following a project review in 2017, we reported that whilst we believed there was still exploration upside at Dalafin, we were not prepared to commit further funding and that seeking a joint-venture partner to progress exploration would be the best route for all stakeholders,” comments Stratex CEO, Tim Livesey.

“We are therefore delighted to have delivered on this agreement, with such a high-profile company, to fast-track exploration at Dalafin whilst minimising our financial exposure.

“IAMGOLD produces 800 000 gold ozper annum, has an extremely good reputation in West Africa and we look forward to working with them and to developing a broader strategic relationship in the region,” concludes Livesey.