Arrow Minerals (ASX:AMD) has been busy reporting today the divestment of the Strickland Copper Gold Project, and the acquisition of a controlling interest in privately held Singapore-based Amalgamated Minerals.
The company’s share price was up 60% as of 9.30am AEST on the back of the series of announcements.
Arrow said it has executed a non-binding term sheet to acquire up to a 60.5% controlling interest in Amalgamated Minerals, which holds a 100% interest in the Simandou North Iron Project in Guinea, West Africa.
Simandou is an ‘exceptional’ early-stage opportunity that provides Arrow with access to the premium iron belt in West Africa at a time where significant infrastructural improvements are underway.
Simandou is an ‘exceptional’ early-stage opportunity that provides Arrow with access to the premium iron belt in West Africa
Under the terms of the proposed acquisition, Arrow will issue 81,250,000 fully paid ordinary Arrow shares for three-month exclusivity option to acquire up to a 60.5% interest in the Simandou North Project through Amalgamated.
Arrow will also look to provide an unsecured interest-free shareholder loan of $2.5 million for exploration expenditure funding for Simandou within 24 months from stage one completion, which will be repayable in cash within a specified timeframe.
Any acquisition of an interest in Amalgmated will not affect the company’s proposed exploration activities on its projects in Burkina Faso.
Simandou is an exceptional early-stage opportunity that provides Arrow with access to the premium iron belt in West Africa at a time where significant infrastructural improvements are underway.
Commenting on the acquisition, Managing Director Hugh Bresser said: “Simandou North Iron ore Project allows Arrow to participate in the development of an area where until now mineral wealth has locked up due to infrastructural constraints.”
Meanwhile, Arrow reports that it has executed a tenement sale and purchase agreement (via its subsidiary) with Dreadnought Resources (ASX:DRE) to sell its 100% interest in the Strickland Copper Gold Project in Western Australia.
As part of the sale, Arrow will receive $600,000 in staged cash payments and 2,350,000 shares in Dreadnought.
Addressing the divestment, Mr Bresser added: “Through this transaction, Arrow also retains an interest in the success of the Strickland Copper Gold Project, whilst being free to focus on its West Africa projects.”
The Strickland project is located 200km north of Southern Cross in Western Australia. The tenement area covers portions of four Archean greenstone belts (Evanston, South Elvire, Mount Manning and Yerilgee), separated by Archean granitoids and gneisses within the Southern Cross Province of the Yilgarn Craton.