Stratex International, the precious and base metals exploration and development company focused on Turkey, announced that it had entered into a Joint Venture with Syrah Resources (ASX: SYR) to ‘fast track’ the development of the Inlice and Antintepe gold projects to production.
The Joint Venture will see Syrah complete a scoping study on both projects, and commit to $1.5 million in expenditure over 2 years. Syrah will also pay Stratex US$100,000 on signing the JV, and a further $100,000 at the end of the first and second anniversary of the JV. Syrah will also issue 4.5 million shares to Stratex on signing the JV. Assuming Syrah meets all of its obligations under the agreement, it will earn a 51% interest in the two project, and will have the option to increase its interest to 70% by issuing a further 3 million shares and funding a feasibility study.
According to Stratex, it would hold a 20% equity stake in Syrah assuming no dilution.
Stratex CEO Dr. Bob Foster said, 'This is an excellent development for Stratex and confirms our business model of identifying quality gold projects for rapid development through JV's, whilst continuing to explore for major new discoveries. Syrah has the expertise and capabilities to rapidly accelerate the Altıntepe and Inlice oxide resources and we look forward to working with them to successfully develop these projects.
'Despite the current market turmoil, Stratex is in an excellent position for growth by being free carried to the completion of a feasibility study. By taking a major equity stake in Syrah we see uplift from this as well as from our remaining 30% share of the potential mining operations. With Syrah initiating the scoping study on Inlice and Altıntepe, it allows us to focus on progressing the new gold discovery at Öksüt where we are currently drilling, as well as adding value to our extensive portfolio of early discoveries in an emerging new gold belt through ongoing exploration.'