Arrow Minerals has secured an agreement with nickel-gold producer Independence Group (IGO) to enter into a joint venture at the Plumridge nickel project in Western Australia.
IGO will acquire 51 per cent of the project, as well as an 11 per cent equity interest in Arrow Minerals to the tune of $2.5 million, with another $2.65 million to be raised through share placements.
In addition, IGO has the option to to increase its interest in the project to 90 per cent should the company spend $5 million or more on exploration over a four-year period.
The deal provides Arrow Minerals with full funding to accelerate its Barlee Gold and Malinda lithium exploration projects over the next year.
Arrow Minerals’ managing director Steven Michaels called the deal “a significant turning point for the company”.
“We are delighted with the overwhelming support we have received for our recent $2.65 million placement, which introduced a number of high quality institutional and professional investors to our share register,” he said. “IGO is a logical partner for Arrow, given its dominant position in the Fraser Range, including 100 per cent ownership of the Nova nickel project.
“Arrow now has sufficient funding to aggressively explore its Barlee Gold (Eastern Goldfields) and Malinda lithium projects (Gascoyne region) and has a supportive major shareholder with gold and nickel assets in Western Australia.”