Stratex International, the AIM-listed gold miner, said yesterday that it would use the fund from the sale of shares to Antofagasta, the FTSE100 copper mining company, to accelerate its gold exploration activities in Ethiopia.

Antofagasta, the FTSE100 copper mining company, is buying a stake of almost three per cent in Stratex International via a private placing.

Shares in Stratex were trading higher by 0.6 per cent at 7.8 pence each in mid-afternoon trading yesterday. The funds raised amounted to £800,000.

It was reported early in August that Stratex International's shares shot up following its announcement of "significant results" from drilling at its Megenta hot spring gold discovery in Ethiopia.

And early this month, Stratex had discovered more gold from drilling at its Megenta hot spring epithermal gold discovery within its exclusive exploration licence at Tendaho in the Afar Regional State.

These include high grade intersection of 19.50 g/t Au over 0.70 metres in hole MG-DD-12 with the potential for bonanza grades veins.

These occurred within zone of 4.49 g/t Au over 3.25 metres about 70 metres below surface and extend the target zone 460 metres along concealed graben edge. The priority target zone at Megenta now extends over 3 km.

The company has completed the 3,000 metre 14-hole scout drilling programme at Megenta and it is now planning to follow up drilling which it will discuss with Thani Ashanti, its partner.

Source: Proactiveinvestors