Strike Resources skyrocketed on ASX amid 90% acquisition agreement in Solaroz Lithium Brine Project


Strike Resources Limited (ASX: SRK) is a mineral mining company, headquartered in Australia. It is operating several projects namely Cusco Magnetite Iron Ore Project and Apurimac Magnetite Iron Ore Project in Peru, Burke Graphite Project in Queensland, Apurimac Iron Ore Project  and several lithium exploration tenements in Western Australia. Currently the company is headed by Chairman and Managing Director, Farooq Khan.

On 13th March 2019, the company announced that it has entered into an agreement to acquire a 90% stake in Argentina based Hananta S.A. for the Solaroz Lithium Brine Project in North-West Argentina.

The Solaroz project is located in the Salar de Olaroz Basin and is spread across 12,000 hectares, mostly adjacent to and surrounded by concessions held by Orocobre Limited and Lithium Americas Corporation. It is comprised of 8 exploitation concessions in Jujuy Province in northern Argentina, approximately 230 kilometres north-west of the capital city of Jujuy. With an altitude of approximately 3,900 metres, good quality road infrastructure provides access.

The company considers the location of Solaroz to be highly strategic and potentially capable for containing higher concentrations and commercial quantities of lithium-rich brine because the company believes that aquifer which supplies the lithium-rich brine being extracted by Orocobre Limited is likely to be extended under Strike’s Solaroz Concessions. This will be concluded by drilling and geophysical work in due course of time. Upon successful completion of these tests, fast-tracking of production of lithium carbonate is to be commenced.

The company has assessed the first step in the direction of the project which is the completion of the Environmental Impact Assessment (EIA) Report which would be submitted to the local JuJuy Mining Regulator.

At the same time, the company will commence preparatory work for a detailed geophysical programme. Once the EIA report is submitted to the regulators and the company receives all the necessary approvals, then it will start its drilling programme. This drilling work will delineate the extent of potential lithium brine, its grade and related hydrological matters. This would help in identifying the potential for commercial development of Solaroz as a lithium brine project.

For this project, the company has also partnered with Hanaq Argentina S.A and will be receiving operating support and services from them to manage the Solaroz Project. Hanaq is an established explorer and experienced lithium brine developer in Argentina. The company is based in Salta, which is located 350 kilometres from Solaroz. It could be a potential offtake partner for lithium, as it has a strong establishment in Chinese battery market through one of its major Chinese shareholders which is supplying some of the world’s largest battery manufacturers with raw materials.

On the technical front, this new development made the investors go “all in”, the result of which can be seen in an astonishing surge of more than 64% in a single trading session. The price closed massively up at A$0.069 (as of 13th March 2019) compared to the previous closing of A$0.042. The YTD return of the stock is standing negative at 8.7% but today’s rally will turn into a positive return by a significant margin.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks To Consider

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here