A$877,000 cash and 28.52% Apurímac sale remain in focus

Conditional Apurímac sale has no completion timetable

Strike Resources Limited (ASX:SRK) is advancing its Apurímac project in Peru while still waiting to convert a proposed minority stake sale into cash. The company says the sale of a further 28.52% indirect interest to JE United Ltd for A$5.5 million remains subject to conditions precedent, with completion required by 16 March 2027 unless the parties agree to an extension. Strike is not currently able to provide a timetable for completion.

On completion, Strike would receive A$5.5 million less A$100,000 to be applied to JE United’s legal expenses, implying net proceeds of about A$5.4 million. Its ownership of the project would fall from 80% to 51.48%. The transaction is the same Apurímac stake sale agreed in March, when JE United’s proposed total indirect interest was set to rise to 48.52%.

Exploration data now guides the next work program

Strike has completed a gravity survey over areas containing known mineralisation and additional zones considered prospective for resource growth. It has also completed geological mapping and surface sampling across priority areas of the Opaban 1 concession, together with high-resolution LiDAR and magnetometry surveys.

The company is now analysing those datasets alongside earlier fieldwork. It says the results will be used to define further exploration and development activities. The filing does not provide updated resource figures or assay results, so the immediate significance lies in the work completed rather than a confirmed expansion of the project’s inventory. The exploration campaign follows the Apurímac exploration program reported in July, which also targeted potential resource growth and a possible return to small-scale mining.

Small-scale mining restart remains preparatory

Strike continues preparations for a potential resumption of small-scale mining under Peru’s REINFO regime, targeting direct-shipping ore production of more than 60,000 tonnes a month. That is a target, not current production. The company is negotiating with potential offtake parties and engaging with local communities over access and participation.

“Apurímac Iron Ore Project, showing proposed Andahuaylas Railway route and proposed San Nicolas Port and San Juan de Marcona Port locations.”

The regulatory setting remains unsettled. Peru’s previous REINFO registration deadline was extended by one year from 31 December 2025, while a new formalisation framework has been proposed for 2027. Strike says the new government’s stated support for artisanal and small-scale mining may create a more constructive environment, but any changes remain dependent on legislation and regulation. Its engagement with Peru’s transport ministry and ProInversión over the proposed Andahuaylas-Marcona railway has also been delayed by political changes.

Cash runway depends on asset realisations

Strike ended the September quarter with A$877,000 in cash and cash equivalents, down from A$1.317 million at the start of the period. Operating cash outflow was A$443,000, including A$119,000 on exploration and evaluation, A$244,000 in personnel costs and A$88,000 in administration and corporate expenses. The company recorded no investing or financing cash flows during the quarter.

On the reported spending rate, Strike calculated approximately two quarters of funding. It cautioned that the quarter included annual listing fees, payroll tax and interim audit costs, which it said made the period’s operating outflows unrepresentative of future quarters. The balance also includes a A$200,000 deposit held in escrow in connection with the proposed Apurímac sale, rather than proceeds already available from the transaction.

LE Minerals stake adds value but not immediate liquidity

Strike’s 27.7% holding in LE Minerals Limited (ASX:LEL), comprising 31.01 million shares, was valued at A$9.15 million using LE Minerals’ A$0.295 bid price at 30 September. LE Minerals has been suspended from ASX since October 2024, meaning the quoted value is not equivalent to readily realisable cash.

Strike also remains exposed to LE Minerals’ proposed A$20 million sale of its Queensland graphite projects to M Battery Materials, which is seeking to raise between A$15 million and A$25 million through an IPO. The transaction still requires LE Minerals shareholder approval, MBM IPO completion and resolution of escrow and in-specie distribution terms. Strike’s potential entitlement to MBM shares therefore remains contingent, just as its near-term funding plan still depends materially on the Apurímac sale completing.