Stratex International PLC entered into a conditional option agreement with a Cameroonian company to earn up to 90% in the early stage Bibemi and Wapouze gold projects in the country.
To help fund the foray into Cameroon, Stratex plans to raise at least £1 million and up to £1.3 million through a share issue that is expected to be priced at 0.5 pence apiece, according to a June 12 statement.
The group's broker will place up to 250 million new shares in the group, representing nearly 35% of the enlarged share capital, while the anticipated price represents a 19% discount to the 30-day average price of Stratex stock as of June 11.
Shares were down nearly 16% in late-morning London trade June 12.
Under the agreement with Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL, or BEIG3, Stratex can earn an initial 51% of the projects by spending US$1.6 million on exploration over two years, including a minimum commitment of US$560,000 within the first year.
The company can increase its stake by a further 39% over the subsequent two years by spending another US$1.6 million on exploration or completing a pre-feasibility study on one of the projects.
BEIG3 will retain a 10% free-carried interest in projects up to the completion of the second option or a pre-feasibility study. Stratex will serve as project manager, with BEIG3 to provide consulting and operational/logistical support.
