Thani Stratex Resources, a company in which Oriole Resources PLC (LON:ORR) holds a 24.92% stake, has signed a binding heads of terms agreement with private investment company Red Sea Resources Ltd in regard to the Hodine licence in Egypt.
Red Sea Resources will earn in to an 85% interest in Hodine, which is currently 100%-owned by Thani Stratex’s local Egyptian subsidiary, in return for paying all outstanding fees and charges and making staged expenditure commitments totalling US$2.2mln.
To date, Red Sea Resources has paid all outstanding fees and charges in connection with the renewal of the Hodine licence in return for an initial 7% interest, with TSR retaining a 93% interest;
Red Sea Resources will now make a series of staged payments to fund exploration.
“We are very pleased to support this agreement,” said Oriole Resources chief executive Tim Livesey.
“It will bring immediate funding, a new team and exploration programme to the licence, which I will be reviewing and supporting through my role as the Thani Stratex Resources’ board representative. Having an existing JORC inferred resource of 209,000 ounces of gold at Anbat and a non-JORC inferred resource of 520,000 ounces of gold at Hutite, there is ample evidence of the prospectivity within the area.”