Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Strike Resources dropped nearly 27% on Friday on news that the company had been unable to agree to commercial terms to sell its Apurimac and Cusco iron-ore projects.
In its June quarterly results, Strike informed shareholders that the company had been involved in discussions with a number of parties which had expressed “serious interest” in acquiring the Peruvian assets.
At the time of releasing the quarterly report, the Strike board was reviewing an offer it had received for the assets.
However, Strike said on Friday that the company had been unable to reach agreements on the commericial terms of the offer. As a result, the offer has now been withdrawn.
In March this year, Strike had an injunction lifted, which had prevented the company from doing any work on its Peruvian assets.
The injunction reportedly related to a dispute regarding a 2006 agreement under which a Strike subsidiary acquired 14 mineral concessions from Minera los Andres y el Pacifico S, which were subject to an option in favour of Millenium Trading.
Strike shares were trading at a low of 5.5c a share on Friday, down from an opening price of 7.1c a share.