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Stratex International raises £1.3 mln for Ethiopia gold assets

Stratex International (AIM: STI) has raised approximately £1.3 million through a placing of 37.2 million new ordinary shares at 3.5p and will use the money to accelerate the development of its Ethiopian portfolio of gold assets and identify additional exploration opportunities.

"Naturally we are delighted to have completed this placing which will help support the next stage of our growth strategy”, Stratex CEO Bob Foster said, “This includes fast-tracking our Ethiopian gold projects, Shehagne and Megenta, to define a maiden resource and economic potential respectively, as well as identifying additional exploration and development opportunities in Ethiopia and acquiring new projects throughout Africa.”

In northern Ethiopia, Stratex plans a 3,000m drilling programme to define maiden resources at the Shehagne gold project and 2,000m reconnaissance drilling to define economic potential of the Magenta gold discovery.
 
The company will also develop prospective targets through its 70%:30% joint venture, with PLUS-quoted Sheba Exploration. "2010 is set to be an exciting year for the company, as we widen our exploration activities in Africa and continue to advance our gold discoveries in Turkey towards production”, Foster added.

The placing was arranged by the company’s broker, Westhouse Securities Ltd, Stratex expects the admission of the placing share to take place on 3 February 2010.

A number of the company’s directors have subscribed for shares in the placing. CEO Foster, CFO Perry Ashwood and non-executive director Christopher Hall all subscribed for 57,143 shares each, while non-executive director Peter Addison bought 142,857 shares. As a result of the placing, Foster will own 2.45% of the enlarged share capital, and Ashwood, Addison and Hall will control 0.54%, 0.5% and 0.4% respectively.

Disclosure: The author holds no positions in the company