Stratex International Plc said Feb. 15 that it signed an exploration agreement with private Turkish firm TET Madencilik Ltd. Sti. covering two of the company's gold projects in Turkey.

Under the terms, the company will transfer the licenses to its Hasancelebi and Dogala projects to TET in exchange for a US$50,000 payment.

TET will spend up to US$1.5 million on exploration and drilling on the properties within two years, with Stratex managing the programs.

If a minimum JORC-compliant resource of 100,000 ounces of gold is defined at Hasancelebi within the exploration period, Stratex will be entitled to a US$500,000 payment. Stratex will also receive a 1.5% net smelter return royalty on any future precious metals production at the property and a 5% NSR on any output of other metals.

The licenses will be returned to Stratex should TET fail to proceed to the operation phase within two years after the exploration period at Hasancelebi ends, even though the minimum resource is achieved.

According to Stratex, the projects have no carrying value in the company's balance sheet as at June 30, 2017, and it incurred about £45,000 in costs on the assets in the year ended December 2016.