AMN - CAMEROON: Stratex secures gold projects option

Stratex International has entered into a conditional option agreement with a local company for two early-stage gold exploration projects, Bibemi and Wapouzé, in north Cameroon. The agreement is with Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL (BEIG3), a well-established company with strong in-country technical and logistic support.

To support its exploration program, Stratex intends to raise a minimum of £1 million and up to £1.25 million via an issue of ordinary shares.

The funds will primarily be used to progress the projects and, together with the company's existing cash, to support Stratex's other projects and for general working capital.

The option agreement will enable Stratex to earn up to a 90% interest in the projects. Stratex can earn an initial 51% by funding US$1.56 million on exploration over 2 years with a minimum commitment of US$560,000 within the first year;

It can earn up to a further 39% interest for further exploration expenditure of US$1.56 million, or completion of a pre-feasibility study on one of the projects, over the subsequent two years.

BEIG3 will retain a 10% free carried interest in the projects up to completion of the second option or a pre-feasibility study on one of the projects.

Stratex will manage the project and BEIG3 will provide consulting and operational/logistics support via a technical support agreement.

Stratex CEO Tim Livesey said: "We are delighted to have entered into this option agreement with BEIG3 for what are exciting early-stage exploration targets in Cameroon. "BEIG3 formerly held the projects in a JV with TSX-quoted Reservoir Minerals, of which I was COO until 2016 when it was sold to Nevsun, but these have recently been returned 100% to BEIG3 and so we look forward to picking-up where Reservoir left off.

"This earn-in to early-stage projects in West Africa is wholly in line with the company's stated strategy, outlined earlier this year, and entirely complements management's regional expertise and experience."

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