Arrow Minerals Limited has agreed to acquire a 70 per cent stake in a Direct Shipping Ore-grade iron ore project in Western Australia from Voyage Minerals Pty Ltd, a subsidiary of Leeuwin Metals Ltd.

The transaction gives Arrow control over an initial tenement application, designated E08/3668, covering a 2-kilometre strike length of surface iron mineralisation adjacent to Arrow’s existing Yarraloola Copper Project in the Pilbara.

Under the agreement, Arrow will pay $125,000 in shares priced at the ten-day volume-weighted average price, subject to a six-month voluntary escrow period. Leeuwin Metals has also granted Arrow a 12-month option to acquire a 70 per cent joint venture interest in two further tenement applications, E08/3719 and E08/3777, for an additional $125,000 in shares upon exercise.

The package spans 319 square kilometres. Voyage Minerals will retain a free-carried interest in the joint venture tenements until a bankable feasibility study and a decision to mine, at which point the vendor can contribute to maintain its 30 per cent equity or dilute to a 1.5 per cent gross smelter return royalty.

The target ground features channel iron mineralisation at surface, crossing the North Western coastal highway. Because the tenements are currently in application, progression to granted exploration and mining licences remains subject to state approval.

“Our team is well aware of the tonnage and cashflow- generating potential of channel iron deposits. We've mined them before and when they are close to quality infrastructure and markets, they present as highly attractive development opportunities. In addition to the iron ore potential, the initial JV tenement (E08/3668) shares a common boundary with our Yarraloola tenement E08/3010. This presents us with an opportunity to test for strike continuation of stratigraphy and mineralisation potential at the Ava target, which we look forward to drilling as soon as possible”

— David Flanagan, Managing Director

Upon completion, Arrow intends to drill test tenement E08/3668. Results from this work programme will guide the company's evaluation of whether to exercise its 12-month option over the two associated tenement applications.

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