Stratex offloads stake in Goldstone Resources

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Gold exploration and development company Stratex announced the sale of its 13.7% stake in Goldstone Resources to institutional investors on Tuesday, at a price of 1.6p per share, for total cash consideration of £0.55m.

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The AIM-traded firm said that following the dilution of its shareholding in Goldstone, resulting from a recent capital raise, the company's ownership had dropped below what it considered meaningful with regard to the ability to influence Goldstone's strategy and direction.

As a result, it no longer met the company's investment criteria.

The Goldstone investment was equity-accounted with a carrying value of £0.95m as at 30 June.

For the year ended 31 December 2016, Stratex recognised a loss of £0.79m before tax and non-controlling interests in respect of Goldstone's operations.

“The proceeds of the sale will be used for general corporate purposes,” the Stratex board confirmed in a statement.

“In conjunction with the … sale, Stratex wishes to advise that Ms Emma Priestley has resigned as a non-executive director of the company effective today, due to her full-time commitments as chief executive officer and director of Goldstone,” the board added.