AIM-listed gold and base metals exploration and development company Stratex International has signed a purchase agreement with private Australian company Aforo Resources and its local subsidiary Aforo Resources Liberia for its Sinoe gold exploration licence in Liberia.
The deal follows a series of initiatives instituted last year which saw Stratex pay Aforo an advance of A$150,000 in December in return for an exclusive period of due-diligence that included the assessment of all soil sampling results to date.
The subsequent purchase agreement sees Stratex commit to spend A$320,000 at Sinoe by 30 November 2014, giving it the option to acquire either Aforo or the Sinoe project for A$100,000. It can however terminate the agreement after expending A$160,000, within the first five months of the Purchase Agreement, ending 4July 2014.
If the work at Sinoe results in a JORC-compliant resource of at least 500 000 oz gold (or the equivalent in other metals or minerals), independently verified by a competent person, before the fourth anniversary of the acquisition completion date, Stratex will pay to Aforo a further A$4 per ounce of resource gold, capped at 1 Moz gold, in either cash or in Stratex ordinary shares valued at the volume-weighted average price traded during the seven days preceding the announcement of the resource, at the sole discretion of Stratex.
“We have monitored work on this licence for the past nine months and have decided that the results of the exploration programme, especially a soil-sampling programme, justifies us taking this step. We already have a footprint in Liberia as a result of our joint venture with BG Minerals and this has allowed us to evaluate the wider exploration potential of the country, which we rate very positively, a view shared by a number of investors and funds that we have met in London in recent months,” says Stratex CEO, Bob Foster.