Stratex International plc, the AIM-quoted exploration and development company focussed on gold and base metals in Turkey and East Africa, announces it has acquired a 49.9% holding in newly-formed potash-focused exploration company Rift Resources plc (‘Rift Resources') after ongoing exploration in the Afar region of Ethiopia has highlighted the prospectivity for the commodity.
· New 500 sq km potash licence in the prospective Afar region of Ethiopia - licence to be assigned to newly-formed company Rift Resources
· Rift Resources aims to increase its exposure to potash and other industrial minerals in Ethiopia and the wider region with a view to listing in due course
Stratex Chairman Christopher Hall said, "Although Stratex's focus remains solely on precious and base metal exploration, we have been opportunistic in acquiring a licence in Ethiopia that is prospective for potash, a commodity that is primarily used as a source of potassium fertiliser. This 500 sq km asset is being transferred to Rift Resources with Stratex acquiring 49.9% of that company, post a fundraising. Stratex shareholders will gain significant equity exposure to this exciting opportunity without any risk, financial exposure or dilution at plc level as a result of funding non-core exploration".
During its ongoing programme of gold exploration licence acquisition in the Afar region of Ethiopia, Stratex became aware that it was operating in an area which is also highly prospective for potash. In line with this, the Company has been awarded, a potash and associated minerals exploration licence covering 500 sq km and, in order to retain its focus on gold exploration, Stratex has agreed to assign the licence to Rift Resources, a newly-formed potash-focused exploration company for a cash consideration equal to the original cost of the licence. Stratex has been allotted and issued 19,999,999 ordinary shares in Rift Resources representing 49.9% of its share capital, as enlarged by a fundraising of £250,000. The Board of Rift Resources has sourced this investment of £250,000 to advance the initial licence and to provide working capital for its development, including the acquisition of additional exploration licences.
Going forward, Rift Resources will seek to increase its exposure to potash and other industrial minerals in Ethiopia and the region and it is intended that Rift Resources shall seek a flotation on a stock exchange in due course.
Stratex Board members, consultants and employees have subscribed for a total of 8,000,000 shares in Rift Resources at nominal value as recognition that they will be spending personal time on an unpaid basis on Rift Resources' business until suitable replacement members of staff are found.
Following consummation of the agreement for Stratex to assign the licence to Rift Resources and the £250,000 third party investment in to Rift Resources plc, Christopher Hall and David Hall, both Directors of the Company, have been appointed to the Board of Rift Resources as non-executive Chairman and non-executive Director respectively, to represent the interests of Stratex International until suitable full-time board replacements are sourced to manage the operation.