Strike Submits Letter of Intent for Andahuaylas–Marcona Railway, Advances Mining Permit

Strategic Engagements in Peru

Strike Resources Limited (ASX: SRK) has reported a productive quarter focused on advancing its flagship Apurimac Iron Ore Project in Peru. Senior executives, including the CEO and CFO, conducted an on-the-ground visit to Peru to oversee operations and deepen engagement with key government bodies, local communities, and infrastructure stakeholders. These efforts underscore Strike’s commitment to positioning Apurimac as a major iron ore supplier with robust export logistics.

Central to this progress was a series of high-level meetings with the Peruvian Ministry of Energy and Mines and the Ministry of Transport and Communications (MTC). Discussions centered on the Andahuaylas–Marcona Railway Project, a pivotal infrastructure initiative designed to connect the Apurimac region to the Pacific coast, facilitating large-scale iron ore exports. Strike submitted a formal Letter of Intent to participate in this railway project, signaling its intent to be a foundational user of this critical transport corridor.

Advancing Export Infrastructure

Complementing the railway discussions, Strike engaged with Terminal Portuario Jinzhao Perú S.A, the awarded contractor for the Marcona Port, which will serve as the railway’s terminus. Negotiations are underway to secure long-term port access, aligning port development timelines with Strike’s broader mining and export strategy. These infrastructure partnerships are essential to unlocking the full value of the Apurimac resource, which boasts a JORC-compliant mineral resource of 269 million tonnes at an average grade of 57.3% iron.

Regulatory Progress and Exploration Expansion

Following consultations with Peruvian authorities, Strike has shifted from a reduced Environmental Impact Assessment pathway to preparing a comprehensive mining permit application. This move reflects the scale of the proposed operations and the need for rigorous environmental baseline data, extending the approval timeline to approximately 12 months. Concurrently, Strike’s geologist has initiated a regional reconnaissance program to explore polymetallic potential within the Apurimac concessions, targeting copper, gold, molybdenum, and silver mineralisation. This exploration could broaden the project’s resource base and enhance its long-term development prospects.

Corporate Developments: Lithium Energy Limited Stake

On the corporate front, Strike holds a 27.7% interest in Lithium Energy Limited (ASX: LEL), which is progressing significant transactions. Lithium Energy’s sale of its 90% interest in the Solaroz Lithium Project in Argentina for US$63 million is now unconditional, with completion scheduled in two tranches across 2025 and 2026. Additionally, Lithium Energy shareholders approved the spin-out of Axon Graphite Limited, which will pursue an IPO on the ASX, focusing on graphite projects in Queensland. These developments reflect ongoing portfolio optimisation and value realisation for Strike’s investment.

Financial Position and Outlook

Strike’s quarterly cash flow report reveals operating and investing cash outflows totaling approximately AUD 649,000, with a closing cash balance of AUD 4.77 million. Payments to related parties amounted to AUD 253,000, primarily director remuneration. The company continues to monitor market conditions and engage with potential international partners regarding project-level investments, offtake agreements, and joint ventures, indicating a strategic approach to financing future development phases.

Overall, Strike Resources is methodically advancing the Apurimac Iron Ore Project through critical infrastructure partnerships, regulatory progress, and exploration expansion, while managing its corporate investments to support long-term growth.