Arrow has a cool half-mill in the hand for its non-core lithium play
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Arrow Minerals has cashed in on its non-core West Australian lithium assets in a win-win deal that will restock its coffers to ramp up exploration on its West African gold projects.
Electrostate will tip $500,000 Arrow’s (ASX:AMD) way for a 90% stake in its Malinda lithium project in WA’s Pilbara.
Arrow will retain an interest any future success Electrostate has at Malinda via a 10% free-carried interest until a decision to mine.
It follows Arrow’s strategic pivot to its high-quality African gold projects including the impressive Vranso project in Burkina Faso, where recent geochemistry results uncovered a bevy of five new major anomalies over a 10km strike length.
“This new agreement provides a win-win outcome for shareholders of both companies,” Arrow managing director Hugh Bresser said.
“Arrow receives a cash injection that allows the Company to advance its West African assets while retaining significant exposure to the Malinda Lithium Project through its free-carried interest.”
Arrow has built a solid platform for Malinda’s new owner, having previously completed geochemical, geophysical, hyperspectral surveys and limited drilling across its three tenements.
Located over an area with pegmatites and associated minerals in the Gascoyne Province of the Capricorn Orogen, historical workings recorded the presence of highly anomalous lithium and tantalum.
The terms of the deal differ from a farm-in arrangement mooted with Electrostate last August, and will see cash enter Arrow’s war chest account quicker to bankroll drilling in Burkina Faso.
Arrow controls a number of gold projects including the Dassa gold discovery, where more than 12,500m of drilling has been completed with 60% of drill holes intersecting gold above 1g/t.
Arrow controls an unbroken 80km of strike over the Boromo belt, in an area with existing infrastructure to support mining near Ouagadougou and recently sunk 35 holes for 3,472m of RC drilling at Dassa, Guido and Semapoun prospects at Vranso.
This article was developed in collaboration with Arrow Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.