Stratex, the gold-focused exploration and development company in Turkey and Africa, has signed an exploration agreement with a local private company, TET Madencilik.
Stratex has agreed to transfer Hasancelebi and Doğala exclusive exploration licences to TET.
TET will pay Stratex US$50,000 within one week of signing the agreement, and spend up to US$1.5 million on exploration and drilling at the projects within two years.
Stratex will manage the exploration and drilling programmes.
TET will pay Stratex a US$500,000 success fee (in cash) if a minimum JORC-compliant Measured or Indicated resource of 100,000 oz gold (at 0.3 g/t Au cut off) is confirmed within oxide and transition material at Hasancelebi within the exploration period.
Stratex will receive a 1.5% net smelter returns (NSR) royalty on any future precious metals production at the licences, and a 5% NSR royalty on the future production of any other metals or industrial raw minerals.
Dr Bob Foster, interim CEO of Stratex, said the agreement will enable the company to start realising value for shareholders imminently from the Hasancelebi and Doğala projects.
"This agreement allows us to share in any upside potential that might be realised, through a success-based payment and a royalty on future production. It will also significantly reduce the company's operational overheads in Turkey through the transfer of licencing and staffing costs to TET," he added.
At 9:55am: (LON:STI) Stratex International PLC share price was +0.05p at 0.8p