Stratex International acquire shares for Tanzania mining project

Stratex International Plc, the British based exploration and development company has agreed with Tembo Gold Corporation of Canada to participate in a strategic financing of up to $8.297 million to continue the exploration and evaluation of its Tembo gold property in the Lake Victoria Gold Belt of Tanzania.

The company has executed a subscription agreement or the acquisition of 11,046,667 subscription receipts for $1.987 million.

Stratex has agreed to subscribe for an aggregate of 11,046,667 Subscription Receipts of Tembo priced at $0.15 per Subscription Receipt, for a total consideration of $1.987 million.

The Subscription Agreement marks the Company’s contribution to a total $8.297 million placement with co-investors New Africa Mining Fund II and Concept Capital Management Ltd.

The conversion of the Subscription Receipts, and assuming the completion of the maximum placement, Stratex will own up to 11,046,667 common shares of Tembo, or approximately 10.3 per cent of the outstanding common shares on a non-diluted basis.

The Company’s holding could increase to 18.7 per cent on exercise of matching warrants in which each warrant will be exercisable to acquire one common share at a price of $0.16 per common share for a period of three years from the subscription closing date.

Funds invested are to be focussed on resource definition - over the next two field seasons - at the Tembo gold property in Tanzania, a package of c.100 km2 of highly prospective licences and applications in Tanzania, adjacent to Barrick’s Bulyanhulu Mine.

Stratex said that obtaining shareholder consent for the strategic investment in Tembo by the Company, the New Africa

Mining Fund II and Concept Capital, and signing the Subscription Agreement, represent significant steps towards closing the transaction and a vote of confidence in our approach.

The remaining hurdles are largely administrative and we expect all outstanding conditions to be met soon, enabling Stratex to get started on the ground.

It looks to pull together the encouraging results obtained by Tembo and focussing on the objective of defining a resource.

Stratex is a London based Alternative Investment Market (AIM)-listed company focused on the exploration and development of gold and high-value base metals in Turkey, East Africa and West Africa.

Listing in January 2006, the company has been positioned to take advantage of the current paucity of exploration activities and the resultant projected shortage in supply of precious and base metals.

Since inception Stratex has rapidly amassed a portfolio of high-potential exploration licences in central and western Turkey, Ethiopia and Djibouti, and Senegal and Mauritania, as a result of the company's informed and aggressive approach to terrain analysis and prospect identification.