Arrow Minerals (ASX:AMD) is aiming for a change amid a recapitalisation and board restructure to try and unlock the potentially significant value of its Simandou North Iron Project in Guinea, West Africa.
Under the plan, iron ore executive David Flanagan has been engaged as part-time consultant to Arrow until his appointment as Managing Director, subject to shareholder.
Arrow is also targeting to raise $3.5 million via a two-tranche share placement. The company has reached agreement with holders of its existing $1 million convertible note (CN) whereby, subject to shareholder approval, the CN holders will convert $500,000 (50%) of the CN into Arrow ordinary shares at a 25% premium to the equity raising price.
Arrow’s significant shareholder Bernadine Holdings, which currently holds 4.81% of its issued share capital (expected to increase to 7.7% post the equity raising), is subscribing for $435,000 in the placement.
Sternship Advisers acted as financial advisor and Thomson Geer acted as legal advisor to the equity raising. Euroz Hartleys acted as lead manager to the placement.
Arrow’s share price has been in freefall since January 2023, dropping from $0.009 to $0.002 amid a trading halt.
Flanagan is a Western Australian geologist and mining executive with more than 30 years’ experience in mining operations and resource development in Australia, Indonesia and Africa. He completed his studies at Curtin’s Western Australian School of Mines in Kalgoorlie, is a Fellow of the Australian Institute of Company Directors.
He was the founder and Managing Director of Atlas Iron and Executive Chair of Delta Lithium. During his time with Atlas, he oversaw its growth from a junior explorer to an ASX top 50 company, starting 5 iron ore mines. Atlas was acquired by Hancock Prospecting in 2018.
Write to Adam Orlando at Mining.com.au
Images: Arrow Minerals
