Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Aim-listed Stratex International on Tuesday announced that its wholly owned subsidiary Stratex Gold had been issued 17.5-million, or 13.2%, of the common shares in Tembo Gold Corporation in return for a subscription of C$1.75-million.
The subscription agreement marked the company’s contribution to a C$5.95-million co-investment with the New Africa Mining Fund II, which contributed C$2.5-million, and Concept Capital Management, which contributed C$1-million, together with other investors, in Tembo Gold.
Stratex’s holding could increase to 23.4% on the exercise of matching warrants. Each warrant would be exercisable for one common share in Tembo until December 2, 2016, at a price of C$0.12 a share.
Tembo further expected to close a second nonbrokered tranche of the private placement by mid-December for up to C$2.3-million.
Funds invested were to be focused largely on exploration drilling and resource definition at the Tembo gold property, in Tanzania, a 100 km2 package of highly prospective licences adjacent to African Barrick Gold's Bulyanhulu mine.
"We are delighted that the equity financing has now been completed, subject only to final approval by the TSX-Venture Exchange, and we anticipate working closely with our co-investors and the Tembo technical team to unlock the potential of this very exciting licence package adjacent to the multimillion-ounce Bulyanhulu gold mine,” Stratex CEO Dr Bob Foster said.
He added that drilling at the Tembo project had already returned some high-grade gold intersections, noting that it was now the investors’ collective task to define the mineralised zones in greater detail and to drive the project toward resource definition.