Australia’s Arrow Minerals has successfully completed a A$10-million placement, paving the way for the company to drill up to 150 holes in the Simandou North iron project, in Guinea.
“After visiting site earlier in the year I could see so many quality drill targets. I wanted to drill them all and grow our interest in the project as quickly as possible. The only constraint was funding,” said Arrow MD David Flanagan.
Arrow has a 33.3% interest in Simandou North and has reached an agreement to accelerate the acquisition of the remaining interest in the tenements, which are along strike from the world’s largest high-grade iron-ore project.
“Given the strong start we have made to drilling at Simandou North and our very positive view of the project’s potential, we have resolved now to be the perfect time to increase our interest to 100% for $2-million cash payment,” said Flanagan.
Over the coming weeks, Arrow will double the rigs in the field to four and accelerate testing targets across the project.
Arrow has received firm commitments to raise A$10-million through the placement of two-billion new shares. Directors Jeff Dowling, Tommy McKeith and Alwyn Vorster will participate in the second tranche of the placement for A$310 000 in aggregate.
The issue price of the placement of A$0.005 a share is a 14.7% discount to the ten-day volume weighted average market price of Arrow ending March 11, and a 28.6% discount to the last traded price of Arrow shares on March 11.