Arrow to raise $10m

Arrow Minerals managing director David Flanagan was suitably impressed when he visited the Simandou North Iron project in Guinea earlier this year and saw so many drill targets. 

So much so, he returned to Western Australia with a desire for the company to increase its ownership in the project. 

Arrow told the market it plans to raise $10 million in a bid to gain complete ownership of the project, along with accelerating its exploration activities. 

"I wanted to drill them all [targets] and grow our interest in the project as quickly as possible," Mr Flanagan said.

"The only constraint was funding.

"This raising will allow us to drill up to 150 holes in the tenement and test a lot of targets this year. Keep in mind, the tenement is along strike from the world’s largest high-grade iron ore project and it hosts forty kilometres of strike of the same host rock formation.

"Before Arrow started exploration in 2023, no-one had ever drilled and assayed a hole for iron on the tenement, and it is also next to a multi-user railway due for commissioning next year.”

Under the capital raise, Arrow will issue 2 billion shares at an offer price of $0.005 per share, which will allow for the company to immediately secure the remaining 66.7 per cent of Simandou North Iron, by way of acquiring Amalgamated Minerals, which holds this stake. 

Bell Potter Securities, Euroz Hartleys and Canaccord Genuity were joint lead managers of the placement, while Peleton Capital and Morgans Financial acted in a co-manager capacity. 

Proceeds will also be put towards pre-feasibility and exploration activities at the project, which will include between 10,000-15,000 metres of drilling inside the first 12 months. 

Mr Flanagan's appointment was announced in December last year. 

Arrow shares were down 28.5 per cent on Wednesday, closing at $0.005 per share.