Strike Resources is progressing the sale of a 28.52% indirect stake in its high-grade Apurímac Iron Ore Project for A$5.5 million, while advancing exploration programs and preparing for potential small-scale mining under Peru’s artisanal regime. The company also holds a 27.7% interest in LE Minerals, which is spinning out its Graphite Projects via an IPO.
- Pending sale of 28.52% Apurímac stake for A$5.5 million
- Ongoing gravity and drone surveys targeting resource expansion
- Preparations for small-scale mining under Peru’s REINFO regime
- 27.7% stake in LE Minerals amid $15 million Graphite spin-out
- Quarterly cash outflows of A$1.035 million with A$1.317 million cash
Sale of Apurímac Minority Interest Nears Completion
Strike Resources (ASX:SRK) is on track to finalise the sale of a 28.52% indirect minority stake in its Apurímac Iron Ore Project in Peru for A$5.5 million, subject to conditions precedent expected to be met by March 2027. The transaction involves selling Strike's entire holding in Strike Finance Pty Ltd, which owns 48.52% of Apurímac Ferrum S.A.C, the project’s concession holder. This deal will increase JE United Ltd’s total indirect interest in the project to 48.52%, consolidating their position as a major partner. Completion triggers a shareholders’ agreement and a US$5 million credit facility from JE United to support project development, including mining operations and iron ore marketing, with exclusive marketing rights granted to JE United until the facility is repaid.
Exploration Intensifies Across Apurímac Concessions
Strike is actively expanding its exploration footprint at Apurímac, conducting a gravity survey over previously untested zones, expected to finish in Q3 2026, alongside ongoing review of geological mapping, surface sampling, and high-resolution drone-based LiDAR and magnetometry surveys. These efforts target resource growth beyond the existing JORC Indicated and Inferred Mineral Resources at Opaban 1 and 3 concessions, with a focus on identifying near-surface mineralisation suitable for near-term direct shipping ore (DSO) production. Preparations are also underway for a potential restart of small-scale mining operations under Peru’s artisanal miners’ REINFO regime, which offers regulatory exemptions for registered informal miners. This includes securing community agreements, delineating mining areas, and facilitating the transfer of REINFO permits.
Infrastructure and Regulatory Developments in Peru
Strike continues engagement with Peruvian authorities on the Andahuaylas-Marcona Railway Project, a critical logistics corridor for iron ore exports. Political instability in Peru during 2025 and early 2026 delayed progress, but the election of President-elect Keiko Fujimori, who supports private investment and mining infrastructure, could accelerate development. The railway project is designated as nationally significant and integrated into Peru’s National Railway Development Master Plan to 2050. Meanwhile, Strike is considering a mining permit application for larger-scale operations, which will require an Environmental Impact Assessment and mining study.
Strategic Investment in LE Minerals and Graphite Spin-Out
Strike holds a 27.7% stake in LE Minerals Limited (ASX:LEL), formerly Lithium Energy Limited, with a market value of approximately A$9.6 million as of 30 June 2026. LE Minerals is advancing its battery minerals portfolio, including gold-copper projects in Queensland, graphite assets, and lithium brine projects in Utah. Notably, LE Minerals has agreed to sell its Graphite Projects to M Battery Materials Limited (proposed ASX:MBM) in a $20 million deal comprising $5 million cash and $15 million in shares. The transaction is subject to shareholder approval and a successful IPO by MBM, after which Strike could receive MBM shares valued at around A$4.155 million through an in-specie distribution. LE Minerals has recently reported progress across its projects, including drilling and geophysical surveys.
Financial Position and Cash Flow Management
During the June 2026 quarter, Strike recorded cash outflows of A$1.035 million, primarily driven by exploration and evaluation expenditure and personnel costs. The company ended the quarter with A$1.317 million in cash and equivalents. Annual concession fees related to the Apurímac Project accounted for a significant portion of the outflows. Strike acknowledges that this quarterly cash burn is not indicative of future quarters and plans to manage expenditures prudently in line with its cash position. The company also notes its ability to realise cash from its LE Minerals investment and the pending Apurímac stake sale to support ongoing operations.
Bottom Line?
Strike’s pending minority stake sale and active exploration signal a cautious but deliberate push to unlock value from Apurímac, while its LE Minerals investment offers a potential liquidity cushion amid evolving market and political conditions.
Questions in the middle?
- Will the conditions precedent for the Apurímac stake sale be met on schedule, and how might delays affect project funding?
- How will the incoming Peruvian government’s policies on artisanal mining and infrastructure impact Strike’s operational plans?
- What are the prospects and timing for LE Minerals’ Graphite Projects IPO and the resulting in-specie distribution to Strike shareholders?