• Anadolu to spend up to US$1.5 million on exploration and drilling at the Project within two years (‘the Exploration Period’);
  • Anadolu to pay Stratex US$500,000 cash if minimum JORC-compliant indicated resource of 50,000 oz gold is confirmed at the Project within the Exploration Period, plus a 1.5% net smelter returns royalty on any future mineral production;
  • Transfer of the Karaagac Exclusive Exploration Licence (‘EEL’) to Anadolu awaiting approval;
  • Stratex to manage the exploration and drilling programmes.

Bob Foster, Stratex Chief Executive, said, "We are delighted to have signed this agreement with the operating subsidiary of a major Turkish company. Karaagac is not a core project for Stratex, and has been on hold for several years, but we have always felt that it has potential for upgrading the resource. This agreement allows us to share in that upside potential should it be realised and the eventual royalty flow would augment our anticipated cash flow from Altintepe and from the Öksüt project where we will benefit from a 1% NSR royalty when it is put into production by Centerra Gold."

Further details:

Stratex Madencilik Sanayi ve Ticaret Limited Sirketi (‘Stratex Madencilik’), the Company’s wholly-owned Turkish subsidiary, has signed the Agreement with Anadolou for the exploration of the Project. Anadolu is 96%-owned by Istanbul-listed ODAS Elektrik.

Under the terms of the Agreement, Anadolou will budget up to US$1.5 million for exploration and drilling of the Karaagac project within a maximum period of two years (the ‘Exploration Period’). An application has been made to the General Directorate of Mining Affairs in Turkey for the transfer of the Karaagac EEL from Stratex Madencilik to Anadolu and a further announcement will be made once the process is complete.

If a minimum JORC-compliant indicated resource of 50,000 oz gold (with a 0.2 g/t Au threshold limit) is confirmed within that period, Anadolu will pay the sum of US$500,000 in cash to Stratex Madencilik and subsequently will pay a 1.5% net smelter returns royalty to Stratex Madencilik on any future mineral production. If, after defining the minimum resource, Anadolu decide not to proceed to the operation phase before the end of the Exploration Period, the Licence will revert to Stratex Madencilik. Stratex Madencilik will manage the exploration and drilling programmes.

Mineralisation at the Project is hosted by a partially outcropping thrust zone and altered limestone. The Company has previously defined an in-house non-JORC compliant inferred resource of 6,389,011 tonnes grading 0.78 g/t Au for a total of 156,798 oz Au. The Project is valued at around £53,000 in the Company’s latest financial statements.