Exploration and development company Stratex International has signed a purchase agreement with Australian company Aforo Resources and its wholly-owned subsidiary Aforo Resources Liberia, for their Sinoe gold exploration licence in Liberia.
Under the terms of the deal, Stratex will commence the exploration progamme at Aforo's Sinoe gold project with a minimum estimated outlay of A$160,000 ($143,000), by 4 July.
Following positive initial results, Stratex has the option to commit an additional A$160,000 ($143,000) to exploration and can abandon its rights to the agreement with no further financial penalty.
Upon completion of the total expenditure of A$320,000 ($286,000), Stratex can later choose to acquire Aforo Resources Liberia or the Sinoe project by paying a further A$100,000 ($89,000) to Aforo Resources.
Upon confirmation of a joint ore reserves committee (JORC)-compliant resource of at least 500,000oz gold or gold-equivalent, Stratex will pay Aforo Resources a further A$4 ($3.5) per ounce of resource gold, capped at one million ounces of gold, either in the form of cash or Stratex shares.
Stratex CEO Bob Foster said the latest development plan comes after analysing work on the licence for the past nine months and that the results of the exploration programme, particularly the soil-sampling programme, justifies the plan.
"We already have a footprint in Liberia as a result of our joint venture with BG Minerals Limited and this has allowed us to evaluate the wider exploration potential of the country, which we rate very positively, a view shared by a number of investors and funds that we have met in London in recent months," Foster said.