Australian Arrow Minerals Limited announces it has executed a binding term sheet to acquire the remaining 39.5% interest in Amalgamated Minerals Pte. Ltd., a private Singaporean registered company, which holds the majority interest in the Simandou North Iron Project in Guinea, West Africa (Project).
A summary of the key terms of the Agreement is set out in Annexure A to this announcement. Arrow holds a beneficial 33.3% interest in the Project and is currently in the process of earning in to increase this interest to a 60.5% controlling interest in the project (see ASX announcement 24 October 2022). This new Agreement provides a mechanism by which Arrow can advance to a 100% interest in the Project.
Key commercial milestones are:
• 80% ownership through the completion of a Pre-Feasibility Study or expenditure of A$15,000,000, whichever is less;
• 90% ownership through the completion of a Feasibility Study or expenditure of an additional A$22,500,000, whichever is less;
• 100% ownership following Amalgamated reaching a decision to mine in exchange for a US$1/tonne royalty.
Arrow Managing Director, Hugh Bresser comments “Establishing these commercial terms with the shareholders of Amalgamated is a major step forward for Arrow. It provides a roadmap for Arrow to advance to 100% ownership of the Simandou North Iron Project.”
The Simandou North Iron Project consists of exploration permit 22967 which lies at the northern end of the Simandou Range and forms an extension of the stratigraphy that hosts one of the largest undeveloped high-grade iron deposits in the world, including Rio Tinto’s Simandou Project with a total measured, indicated and inferred mineral resource estimate of 2 billion tonnes grading 65.5% iron.