Quarterly Activities and Cashflow Report
Perth, April 15, 2024 AEST (ABN Newswire) - Arrow Minerals Limited (
ASX:AMD) is pleased to report on its activities for the quarter ended 31 March 2024 ("March 2024 Quarter").
Highlights
- Raised $13 million in two placements to fund Simandou North Iron Project
- Completed accelerated acquisition of remaining 66.7% interest, taking 100% legal and beneficial interest in Amalgamated Minerals Pte. Ltd, which holds the Simandou North Iron Project
- Strong start to 2024 drilling campaign with the identification of iron mineralisation in the very first holes
- Completed 21 drill holes for 1,358 metres during the Quarter
- Drilling continues with a further 7 holes completed for 480 metres in early April
- Drill capacity doubled during March, with the Company on track to have 5 drill rigs drilling targets for Direct Shipping Ore ("DSO") iron mineralisation by the end of April 2024
- Board restructure completed in February 2024
Mr David Flanagan, Managing Director said:
"The team have achieved a great deal, and we are just getting started. We've raised the funds, put drilling rigs in the field, and there are more to come. We really like the geology and we are looking forward to results due from the laboratory later in April. The target for the June quarter is to complete 6 times the drilling we achieved this quarter - This is high impact drilling, testing another 5 target areas in the next three months. That means spreading out across the project, drilling more than 100 holes and staying focused.
"We are also very pleased to report our neighbours (Winning Consortium, Rio and SimFer Joint Venture) remain on track for commissioning a multi-user, heavy haul rail network linking the project to the port in late 2025."
SUMMARY OF ACTIVITIES DURING THE MARCH 2024 QUARTER
Strong start to 2024 drilling
Arrow's Simandou North Iron Project is located immediately north of the Simandou Iron Ore Project, the world's largest high grade iron ore project. Approximately 40 kilometres of strike of the prospective Simandou iron formation is interpreted to extend into the Company's Simandou North license. The Company (as disclosed via ASX Announcement 3 October 2023) has identified high grade mineralisation in the sequence and is now systematically testing targets across the project.
Arrow has already reported encouraging geology in drilling results (see ASX release dated 1 March 2024).
The Company eagerly awaits assay results which will start arriving from late April. Subject to weather and drilling conditions, the Company is planning to complete more than 10,000 metres in the June Quarter.
The Winning Consortium and the SimFer Joint Venture (Rio Tinto and Chinalco) are collectively spending $USD26 Billion to develop a mine, multi-user rail, and port system. This is a huge investment undertaken after 30 years of studies and investment due diligence. Arrow's Simandou North Iron Project comes within 25km of the rail construction corridor.
~$13 million raised in two placements to fund the Simandou North Iron Project
The proceeds of the Placements and recent Share Purchase Plan ("SPP") will be predominantly used to advance exploration at the Company's Simandou North Iron Project, with a focus on executing a high impact drilling programme in 2024;
1. $3,050,000 Tranche 2 Placement subscription funds (before costs) following shareholder approval on 15 February 2024;
2. $500,000 via a Share Purchase Plan ("SPP") (refer ASX announcement on 27 February 2024);
3. ~$9,500,000 Tranche 1 Placement subscription funds (pursuant to a share issue completed on 21 March 2024); and
4. ~$500,000 Tranche 2 Placement subscription funds subject to shareholder approval on 23 April 2024.
Acquisition of the remaining 66.7% interest in the Simandou North Iron Project During the March 2024 Quarter, Arrow completed the acquisition of the remaining 66.7% interest in Amalgamated Minerals Pte. Ltd ("Amalgamated"), which holds the Simandou North Iron Project, taking the Company's legal and beneficial interest to 100% (refer ASX Announcements of 13 and 27 March 2024 for further details) ("Amalgamated Acquisition").
The $2,000,000 payment to the vendors at completion of the Amalgamated Acquisition forms part of the intended use of proceeds referred to in the Company's $10,000,000 capital raising announced on 13 March 2024.
Board restructure completed in February 2024
Effective from 15 February 2024, following shareholder approval of the second tranche of the Placement announced in December 2023 and other resolutions, as previously announced, experienced director, Jeff Dowling was appointed Non-Executive Chair and Mr David Flanagan was appointed Managing Director. Former Chair, Mr Tommy McKeith became a Non-Executive Director and Mr Alwyn Vorster remains as Non-Executive Director.
To view the Full Quarterly Report, please visit:
https://abnnewswire.net/lnk/O11Z0CG8
About Arrow Minerals Ltd
Arrow Minerals Ltd (ASX:AMD) is an exploration and development company focused on delivering long-term shareholder value through the discovery of economic mineral deposits in West Africa. The Company has implemented a systematic science-based exploration philosophy whilst remaining commercially nimble to ensure we capture and retain value.
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