Crusader Resources to divest interest in iron ore mine, says Stratex

Brazil-focused, Australia-listed Crusader said it would sell 100% of its interest in the Posse mine for R$8.005m (£1.94m) conditional on the company receiving the first payment of R$1.0m on or before early August 2017, and on the transfer of the Posse mineral tenements to the acquirer by the Brazilian mines department.

The consideration would be paid over a 17 month period and remaining funds are to be received in 15 equal monthly payments beginning 60 days from the effective date of the sale agreement in early August this year.

Stratex chief executive Marcus Engelbrecht said "the agreed sale of Posse marks an important step in our ongoing acquisition of Crusader, reinforcing the company's intention to become a gold explorer and near-term producer and freeing the management team of the combined group to focus on that vision".

AIM-listed Stratex and Crusader agreed a reverse takeover where Crusader shareholders will be entitled to receive 6.60 Stratex shares for each of their Crusader shares, valuing Crusader at roughly £31.1m and meaning the Aussie firm's shareholders will own 81.0% of the enlarged company.

The company's shares at 1.23p by 09:28 BST.