Arrow Minerals Ltd. said Feb. 5 that it will raise up to about A$5.2 million through a deal with Independence Group NL and an oversubscribed placement of common Arrow Minerals shares.
Independence Group agreed to acquire a 51% stake in Arrow Minerals' Plumridge nickel project in Western Australia for A$1.5 million and to subscribe for A$1 million of Arrow Minerals shares at 2.9 Australian cents apiece, giving Independence Group an 11% shareholding in the company. An attaching option with a strike price of 10 cents that expires Dec. 31, 2019, will be issued for every 2 Arrow Minerals shares.
The two companies will form a joint venture over the Plumridge project. Independence Group will manage all exploration activities as the majority owner. Independence Gold may raise its project stake to 90% by spending A$5 million over four years and could accelerate this earn-in by paying Arrow Minerals the cash equivalent of the required costs.
Independence Group plans to start exploration at Plumridge immediately.
In addition to the deal with Independence Group, Arrow Minerals will raise about A$2.7 million in an oversubscribed two-tranche share placement to sophisticated investors under the same terms as the placement with Independence Group.
Both placements remain subject to the approval of Arrow Minerals shareholders, which will be sought during a shareholder meeting in early March. Proceeds are earmarked for exploration at the company's Barlee gold and Malinda lithium projects, both of which are in Western Australia.
