Arrow Minerals is set to acquire stake in Simandou North project in Guinea. The firm has executed a non-binding term sheet to acquire up to a 60.5% controlling interest in Amalgamated Minerals Pty Ltd, a private Singaporean registered company, which holds a 100% interest in the iron project.
“Simandou North Iron Project allows Arrow to participate in the development of an area where, until now, mineral wealth has been locked up due to infrastructural constraints,” said Arrow.
The Simandou North project comprises exploration permit 22967, which is located at the northern end of the Simandou Range. The region hosts one of the world’s largest undeveloped high-grade iron ore provinces. The deal will see Arrow issue 81,250,000 fully paid Arrow ordinary shares for three-month exclusivity option, to acquire an interest of up to 60.5% in the Simandou North Project through Amalgamated.
Upon satisfactory due diligence and certain conditions precedent, Arrow will have the option to purchase a 33.3% holding in Amalgamated from Ropa Investments (Gibraltar) by issuing 500 million fully paid ordinary Arrow shares. The company may provide $2.5m in exploration expenditure funding for the project and purchase an additional 27.2% stake in Amalgamated.
Arrow Minerals managing director Hugh Bresser said: “Global demand for high-grade iron ore continues to grow and the Simandou Range hosts the world’s largest undeveloped high-grade iron deposits. Furthermore, Arrow divested its non-core Strickland copper/gold project to an undisclosed firm for $600,000.
“Simandou North Iron Ore Project allows Arrow to participate in the development of an area where until now mineral wealth has locked up due to infrastructural constraints.”