Strike Resources has decided to close its Peruvian office and will look to offload its assets in the South American country.
The company said the decision was the result of a full strategic review.
"All Peru-based employees (apart from the Managing Director) have now been released and costs reduced to a minimum," the company said in a statement.
"The managing director will re-locate back to Perth in June."
Strike said it was in discussions with "a number of parties interested in participating in further development or acquisitions of these assets".
The company's main assets in Peru include the Apurimac and Cusco iron-ore projects.
Shares in Strike Resources were up 0.5 cents, or 12.5 per cent, to 4.5 cents at 12.55pm.