Oriole Resources, an exploration company focused on West Africa, has provided an update on its 26.1% interest in East African explorer Thani Stratex Resources.
Thani Stratex Resources (TSR) has assets in Djibouti and Egypt.
TSR has reached agreement with Onyx EX B.V. in respect of their joint venture company, Thani Stratex Djibouti (TSD), for the funding of an exploration programme in TSD.
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This funding is being underwritten by African Minerals Exploration & Development Fund III (AMED Fund III) and will allow an accelerated exploration programme in Djibouti over the next three years.
The funding will be available in tranches and is subject to achieving pre-defined performance milestones.
TSR has also completed a restructuring in order to spin-out its 50% ownership of TSD creating a standalone vehicle that will be funded and managed independently and giving the shareholders of TSR a direct interest in TSD.
Oriole Resources CEO, Tim Livesey, says:
“We look forward to seeing the projects in Djibouti making progress again after what has been an extended period of inactivity since early 2018.
“Oriole’s early work on these assets, prior to the formation of Thani Stratex in 2014, showed that they are highly prospective for gold.
“We are excited to see what progress can be made with a well-managed and well-funded drill programme and look forward to receiving results from the upcoming programme through the first half of 2020.
“We support the involvement of AMED Fund III in the future management of TSD and believe that they will be focused on maximising returns for the investors.”
- TSR secures funding from AMED Fund III for development of Djibouti assets;
- The Funding will be via a convertible loan note, which will convert to preference shares at US$2.24295 per share. The Preference Shares will be convertible to ordinary shares on a one for one basis;
- Funding to take place in equal tranches, subject to performance milestones, with a new internal management structure taking over operational control of the projects;
- Planned 42,000 metres drilling in Djibouti, focusing on three projects, namely Pandora, Hesdaba and Assaleyta projects – initial work expected to commence in Q4 2019;
- TSR has spun-out TSD as a separate investment vehicle. The two entities will have different management structures;
- TSD’s share capital has been restructued into 5.35 million ordinary shares;
- Oriole’s resultant holdings now stand at 26.1% and 13.05% in TSR and TSD respectively.