LONDON (ShareCast) - Gold and base metal explorer Stratex International is taking a stake in a gold property in Tanzania.

Stratex is to invest up to C$1.657m of a conditional share placing worth up to C$8.657m in return for an initial holding of 10.3% of Tembo, which could increase to 18.7% upon the exercise of warrants.

The cash will help Tembo to continue the exploration and evaluation of the Tembo gold property in the Lake Victoria gold belt of Tanzania.

Stratex, which is focused on gold and base metals in Turkey, East Africa and West Africa, will take part in the placement as part of an investor group with the New Africa Mining Fund II and Concept Capital Management, which could control up to 60.5% of Tembo.

Stratex Chairman Christopher Hall said Tembo had yet to report a gold resource but would benefit from the investor group's help to speed up exploration.

"I look forward to updating shareholders when all conditions have been met, closing has occurred and work on the ground can begin," he said.

PW

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