Strike Reports A$5.4M Cash, Submits EIA for Opaban 1 Drilling Program

Apurimac Iron Ore Project Progress

Strike Resources Limited (ASX:SRK) has provided a comprehensive update for the quarter ending 31 December 2024, highlighting continued advancement of its Apurimac Iron Ore Project in Peru. The company submitted an Environmental Impact Assessment (EIA) for the Opaban 1 concession to facilitate a drilling program aimed at further resource definition and exploration. This step is critical in streamlining regulatory approvals and advancing the project towards development.

Despite subdued iron ore prices impacting immediate mining operations, Strike remains committed to securing community support and enhancing stakeholder relationships. The company sponsored the Apurimac Business Leaders Forum in Andahuaylas and conducted workshops addressing local infrastructure and farming needs, underscoring its integrated approach to social license and regional development.

Strategic Government Engagement

Strike’s leadership engaged with senior Peruvian government officials during the International Mining and Resources Conference (IMARC) in Sydney and subsequent meetings in Peru. Discussions focused on Strike’s development plans for Apurimac and the potential role in the Government’s Andahuaylas-Marcona Railway project, a key infrastructure initiative that could significantly enhance logistics and export capabilities for the iron ore project. While the resignation of the Minister of Energy and Mines introduces some short-term uncertainty, Strike plans to maintain momentum by engaging with the incoming minister.

Lithium Energy Investment and Sale Update

Strike holds a 27.7% stake in Lithium Energy Limited (ASX:LEL), which is undergoing a significant transition. Lithium Energy’s main asset, the Solaroz Lithium Brine Project in Argentina, is being sold to CNGR Netherlands New Energy Technology B.V. for US$63 million. The sale terms were amended in December 2024 to remove conditions precedent, with CNGR paying a non-refundable second deposit of US$6 million in January 2025. The balance remains payable in scheduled tranches through 2026, subject to certain contingencies.

Meanwhile, Lithium Energy’s shares remain suspended on the ASX pending the completion of the Solaroz sale and demonstration of sufficient operational activity. The company is also progressing the consolidation of its graphite assets in Queensland through a proposed IPO of Axon Graphite Limited, aiming to create a vertically integrated battery anode material business.

Financial Position and Outlook

Strike reported total expenditure of approximately A$756,000 for the quarter, primarily related to personnel, corporate, and Apurimac project operating costs. The company ended the quarter with A$5.4 million in cash and cash equivalents, providing an estimated 7.8 quarters of funding at current expenditure levels. This financial position supports ongoing exploration and development activities while Strike navigates market conditions and regulatory processes.

Overall, Strike Resources is balancing near-term operational challenges with strategic initiatives that could unlock significant value. The company’s dual focus on advancing the Apurimac iron ore project and realising value from its Lithium Energy investment positions it well to capitalise on improving market dynamics and infrastructure developments in Peru and battery minerals sectors.