Stratex arranges funding for Djibouti drill programme

Christopher Hall, Stratex’s chairman said the investment highlights the quality of the Djibouti targets, even in this depressed market.

Stratex International‘s (LON:STI) joint venture in Djibouti, Thani Stratex, has arranged US$1.25mln of funding for a first drill programme in the African country.

NurtureEx will provide the cash through a non-repayable and interest-free convertible loan.

Thani Stratex (TRSL) will now carry out 4,000 metres of drilling that will focus on the Pandora vein system with the Asaleyta prospect, 16 km to the north of Pandora, also a target.

Recent work at Asaleyta defined disseminated and vein-hosted gold mineralisation in rhyolite domes.

NurtureEx has an option to fund a further 4,000m of drilling for an additonal investment of US$1.25mln. If itexercises this right, NurtureEx’s  loan would convert into a 50% interest in Thani Stratex Djibouti, the entity that holds the concessions. Otherwise its loan converts into TSRL shares at US$2 per share.

Stratex currently has a 40% interest in the joint venture following its original US$1mln investment, but this will drop to 38.4% after certain costs were capitalised and to 35.4% if NurtureEx converts its original investment.

Christopher Hall, Stratex’s chairman said the investment highlights the quality of the Djibouti targets, even in this depressed market.

“New gold districts, not just new gold projects, are required for the future of the mining industry and TSRL is at the forefront of this exploration with its strategic land package in the Afar Epithermal Province.

“Success in Djibouti will transform the upside potential for TSRL in the region, where it retains full control of the rest of its highly prospective licences.“