British gold and metals explorer Stratex International Plc (LON:STI) said on Monday it had agreed to sell a 51% stake in the firm that holds its Muratdere assets in Turkey to a unit of local investor Pragma Finansal Danismanlik Ticaret AS.
The transaction calls for Pragma’s wholly-owned mining investment firm, Lodos Maden Yatirim Sanayii ve Ticaret AS, to pay USD1.7m (EUR1.4m) in cash for the controlling stake in the joint venture Muratdere Madencilik Sanayi ve Ticaret AS, which holds the assets related to the Muratdere porphyry copper-gold-molybdenum project in Turkey. The signing of the deal comes after Pragma concluded a four-month due diligence on the particular project.
Under the terms, Lodos may increase its stake in the JV to 61% if it pays a further USD500,000 and also funds an additional 3,000 m (9,843 ft) of diamond drilling within 15 months of the date of the initial stake purchase. Later, it will also have the right to raise its holding to 70% if it finances a comprehensive feasibility study.
Stratex focuses on exploring and developing gold and high-value base metals projects in Turkey as well as in east and west Africa. The company currently has two Turkish projects that are expected to initiate gold production next year.