update strikes interest in peruvian iron ore

www.strikeresources.com.au
STRIKE RESOURCES LIMITED A.B.N. 94 088 488 724
Level 14, 221 St Georges Terrace, Perth WA 6000
ASX Code: SRK T | +61 8 9214 9700 F | +61 8 9322 1515 E | [email protected]
Friday, 18 July 2008
MARKET ANNOUNCEMENT
UPDATE STRIKE´S INTEREST IN PERUVIAN IRON ORE ASSETS
Peruvian Judiciary confirms inapplicability of “judicial precautionary measure” to Strike´s right
to exercise its options to move to 51% direct interest in flagship Peruvian iron ore assets.
Strike is pleased to announce that it has been informed by Apurimac Ferrum S.A. (AF) that the
Peruvian Judiciary has formally notified AF that the judicial precautionary measure (JPM) requested
by D&C Group is inapplicable to, and does not affect in any manner whatsoever, the exercise of the
options effected by Strike on 29 May 2008 to purchase an additional 38.5% interest in AF (Options).
As stated by Strike in its market announcement on 2 June, exercising the Options gives Strike a 51%
direct interest in AF.
As previously announced, Strike also holds a 70% shareholding in Iron Associates Corporation (IAC)
which it acquired from MAPSA and its shareholders in February 2007 (IAC Transaction). IAC´s sole
asset is a 24.5% shareholding in AF. Strike´s indirect holding in AF, through IAC, equates to a
17.15% interest in AF. In this regard, Strike has also been informed by AF that the IAC Transaction
has been temporarily suspended by the JPM, however, Strike continues to hold the majority of AF
through its 51% direct interest in that company.
In its market announcement dated 18 June 2008 Strike stated that, to the best of its knowledge, D&C
had failed to commence arbitration which, under the AF Shareholders Agreement, is the appropriate
forum to conclusively deal with the substance of its claims (namely that the IAC Transaction violates
the AF Shareholders Agreement and that Strike’s exercise of the Options is invalid). Strike confirms
that, as at the date of this announcement, it has still not even been served with an arbitration request
filed by D&C.
As announced on 18 June 2008 and in the absence of any definitive action by D&C, Strike has filed its
own arbitration request seeking a final declaration that the IAC Transaction remains valid and binding
on the parties and, accordingly, reaffirming its additional 17.15% interest in AF through IAC, and a
final declaration as to the validity of the exercise of the Options.
Strike is awaiting confirmation of the formation of the arbitration panel of three (3) members, who will
then set a timetable for the future conduct of this action.
For further information:
John Stephenson Shanker Madan
Chairman Managing Director
T | (08) 9214 9700 T | (08) 9214 9700
E | [email protected] E | [email protected]