Stratex transfers Turkish exploration licenses to local operator

TET was set to pay Stratex $50,000 within one week of the agreement being signed and was prepared to spend as much as $1.5m on the exploration and drilling of the two projects over the next two years.

Stratex, which will manage the exploration and drilling programmes, will receive a $500,000 success fee it a minimum JORC-compliant measure or indicated resource of 100,000 ounces of gold at 0.3 grams per tonne is confirmed within oxide and transition material at the Hasançelebi site.

The agreement also made Stratex a recipient of 1.5% net smelter returns royalty payments on any future precious metals production at the licences and a 5% cut on the future production of any other metals or industrial raw minerals.

Dr Bob Foster, Stratex's interim chief executive, said, "Realising value from our existing portfolio is a key focus for the company, and the licence transfer of these dormant, non-core projects is one that benefits all stakeholders. Whilst the projects have been non-core to Stratex's portfolio over the last few years, the drilling to date at Hasançelebi, through a former joint venture with Teck, has demonstrated the potential for low-grade, high-tonnage gold mineralisation."

"This agreement allows us to share in any upside potential that might be realised, through a success-based payment and a royalty on future production. It will also significantly reduce the Company's operational overheads in Turkey through the transfer of licencing and staffing costs to TET," Foster added.

As of 1000 GMT, Stratex shares had dropped 5.33% to 0.710p.