November 21, 2008

Strike eyes sale of Peru iron ore mines

Junior explorer Strike Resources Ltd said that it is discussions on the possible sale of its iron ore interests in Peru and in talks with steelmakers for potential supply.

Strike said it had been in discussions over the past several months with certain parties regarding the part or entire sale, of its iron ore interests in Peru or a potential investment in the projects. It said that the size or quantum of such a transaction is significant and if finalized would value the company's interest in these iron ore projects at an amount substantially greater than the company's current fully diluted market capitalization of AUD 254 million.

Strike said it was also conducting preliminary discussions with steel mills in China and Japan in relation to the potential supply of iron ore.

The company holds the Apurimac and Cuzco projects north east of San Juan in Peru and has flagged plans to produce up to 20 million tonnes of iron ore per annum by 2011.