Arrow raises $5.2m in JV and placement

Arrow Minerals (formerly Segue Resources) has received $5.2 million through a joint venture agreement and equity investment from nickel and gold producer Independence Group, along with a capital raising to fund its gold and lithium projects in Western Australia.

Under the Plumridge nickel joint venture, Independence will take a 51 per cent stake in Arrow’s exploration licences in the Fraser Range province, located 300 kilometres east of Kalgoorlie, for $1.5 million.

Independence will manage exploration activities within the project and can increase its interest to 90 per cent by spending $5 million over the next four years.

Independence is the largest tenement holder in the Fraser Range and also owns the Nova nickel project, 200km south of the Plumridge project.

In addition to the JV, Independence has agreed to purchase $1 million worth of Arrow shares at 2.9 cents each, with one attaching listed option for every two shares bought.

Following the placement, Independence will hold an 11 per cent stake in Arrow.

Meanwhile, Arrow has completed a $2.6 million raising on the same terms as the Independence placement, with Hartleys acting as lead manager.

Arrow said the placement was heavily oversubscribed with support from institutional and professional investors.

Proceeds from the placement will be used on exploration at the company’s Barlee gold project in the Goldfields and the Malinda lithium project, located 250km east of Carnarvon.

Arrow managing director Steven Michael said the new partnership with Independence was logical.

“The investment of $2.5 million by IGO for a majority interest in the Plumridge nickel project and strategic equity stake in Arrow is a significant turning point for the company,” he said

“In addition, we are delighted with the overwhelming support we have received for our recent $2.6 million placement which introduced a number of high quality institutional and professional investors to our share register.”

Shares in Arrow were up 16 per cent at 3.6 cents while shares in Independence were down 5.1 per cent at $4.66.