Stratex International (LSE:STI) has undergone extensive changes to its board in recent months after a general meeting was requisitioned which also put the brakes on a proposed merger with Crusader Resources.
The company has interests in gold-focused assets in Turkey and Africa and at year end 2017, its net assets totalled just over £10m. This includes £6.2m invested in subsidiaries, £5.5m of which relates to the group’s investment in Thani Stratex Resources Limited (“TSR”). The recoverability of this investment is reliant upon TSR’s underlying exploration projects in Egypt, Djibouti and Ethiopia and it’s worth noting TSR’s Financial statements for the year ended 2016 included a material uncertainty about the ability of TSR to retain good title to their Ethiopian licenses.
Stratex has recently invested a further £600,000 to retain a 30.4% stake in TSR, who are undertaking a drilling campaign at the Pandora epithermal gold project in Dijibuoti.
The group also recently announced it had received governmental approval for its Option Agreement with AGEM Senegal Exploration Suarl (‘AGEM’) in respect of the Dalafin gold project in Senegal. An initial exploratory work programme will begin shortly.
To complete the board shuffle, Tim Livesey became Chief Executive Officer last month. Tim is a geologist and has 30 years experience under his belt and commented:
The Board and Management have steered the company through a difficult year; it is now time for us all to focus on developing some new opportunities for exploration and development success, in what we hope will be a more positive market through 2018/19.”
With a Market Cap of just £3.15m, and the share price has just bounced off the bottom of its current price channel, this explorer could be worth a closer look. However, a dip below today’s price of 0.67p could see a retest of the recent 0.52p low.