SXT listed on the ASX on 7 October 2011 as a gold and copper-gold exploration company established to utilise some of the innovations in geosciences to target areas in Western Australia prospective for the discoveries of gold and copper-gold ore bodies. Since listing, the Company has focussed on gold exploration, and currently has an interest in the East Menzies Goldfield, located in the Yilgarn Shield of Western Australia. The current principal activity of the Company is exploration in the East Menzies Goldfield.
On 1 July 2015, the Company entered into the Option Agreement with the shareholders of Locality Planning Energy Pty Ltd (LPE) and LPE, under which Stratum was granted an option to acquire 100% of the issued capital of LPE. Stratum has paid a $100,000 and exercised the option on 31 July 2015 and commenced work on completing the Conditions Precedent included in the Option Agreement. The Option Agreement was subsequently varied by the parties on 8 July 2015 and 15 September 2015.
The Company has called a General Meeting, to be held on 2 November 2015, to seek the approval of its Shareholders to change the nature of the Company’s activities from a mining exploration company to an electricity retailer. At the General Meeting, Shareholders will consider resolutions relating to the change in the nature and scale of the Company’s activities, as well as resolutions required for Settlement of the Acquisition and undertaking the Offers. It is the current intention of the Board to divest its East Menzies Goldfield project on or following Settlement of the Acquisition and to focus on the LPE business.
SXT proposes to change its name to “Locality Planning Energy Limited” on Settlement of the Acquisition, which in the Board’s opinion will be better suited to the Company’s new strategic direction. The Company is seeking to raise up to $6,000,000 through the issue of up to 300,000,000 Shares at an issue price of $0.02 per Share, with a minimum subscription of $4,000,000 (Public Offer).
The funds raised from the Public Offer, together with the Company’s and LPE’s existing cash reserves will be primarily used to fund site conversion costs, pursue potential acquisitions, employ additional personnel and repay monies under existing loans, excluding a site conversion loan facility.
The proposed acquisition of LPE described further in the Prospectus signifies an important transforming event that will see the Company focus its business activities on the development of LPE.
LPE is an energy retailer authorised by the Australian Energy Regulator (AER) to supply and sell electricity to residential, commercial and industrial customers throughout the National Energy Market (NEM). LPE currently supplies and manages electricity sales to strata communities, both existing and new developments, generating significant savings on electricity delivered to strata community common areas and its occupants.