Arrow Minerals to drill 150 holes in tenement following funding boost
Arrow Minerals Limited (ASX: AMD) has successfully secured firm commitments amounting to $10 million through a share placement priced at A$0.005 per share, marking a significant milestone in its journey towards expanding its exploration endeavors. This development is a strategic move aimed at accelerating the exploration and potential development of high-quality drill targets within the company’s tenement.
David Flanagan, Managing Director of Arrow, expressed his excitement about the future prospects of the project, emphasizing the vast potential of the drill targets identified earlier in the year. The funding secured through this placement is set to enable the drilling of up to 150 holes, aiming to extensively test numerous targets across the tenement throughout the year. Highlighting the strategic importance of the tenement’s location, Flanagan noted its proximity to the world’s largest high-grade iron ore project and its hosting of 40 kilometers of the same host rock formation, a factor that significantly enhances the project’s potential.
Prior to Arrow’s exploration activities in 2023, the tenement had remained untapped for iron ore, despite its promising geological features and strategic location next to a multi-user railway slated for commissioning next year. With a strong start in drilling at Simandou North and a positive outlook on the project’s potential, Arrow has decided to seize the moment to increase its interest in the project to 100% through a $2 million cash payment.
In a bid to ramp up its exploration activities, Arrow plans to double the number of rigs in the field to four and accelerate testing across the project. This move is anticipated to significantly advance the company’s exploration capabilities and fast-track the identification and development of viable mineral deposits.
The placement is structured in two tranches, with the first tranche raising approximately $9.5 million through the issuance of 1,895,941,273 new shares under the company’s existing placement capacity. The second tranche, pending shareholder approval, will see the issuance of an additional 104,058,727 shares to raise around $0.5 million. Notably, Arrow Directors Jeff Dowling, Tommy McKeith, and Alwyn Vorster will participate in the second tranche, underscoring their confidence in the company’s strategic direction and growth prospects.
The proceeds from the placement are earmarked for exploration, evaluation, and pre-feasibility work at the Simandou North Iron Project, including an ambitious drilling program of 10,000 to 15,000 meters within 12 months. This financial injection will also facilitate the immediate acquisition of the remaining interest in Amalgamated Minerals Pte Ltd, thereby consolidating Arrow’s ownership of the Simandou North Iron Project to 100%.
Arrow Minerals Limited’s strategic placement and consequent funding boost represent a pivotal moment in the company’s history. With a clear focus on expanding its exploration activities and securing full ownership of the Simandou North Iron Project, Arrow is poised for significant growth and development.
The company’s commitment to advancing its exploration efforts and unlocking the potential of its tenements signals a promising future for its stakeholders and the broader mining industry.
Arrow Minerals Limited’s strategic approach to funding and exploration signifies a robust confidence in the potential of its projects and the broader iron ore market. By securing a substantial investment and strategically expanding its exploration activities, Arrow is well-positioned to capitalize on the increasing demand for iron ore and other minerals. The company’s focus on rigorous exploration and strategic acquisitions highlights its ambition to become a significant player in the mining sector, offering promising prospects for investors and contributing to the global supply of essential minerals.