Arrow Minerals Ltd. has agreed to acquire a 70 per cent joint venture interest in a direct shipping ore (DSO) grade iron ore project in Western Australia’s West Pilbara region from Voyage Minerals, a subsidiary of Leeuwin Metals Ltd.
The deal secures access to tenement application E08/3668, which sits adjacent to Arrow’s existing Yarraloola copper project. Leeuwin has also granted Arrow a 12-month exclusive option to acquire a 70 per cent stake in two nearby tenement applications, bringing the total prospective footprint to 319 square kilometres.
Under the initial terms, Arrow will issue Leeuwin AU$125,000 in shares subject to a six-month voluntary escrow. To exercise the option for the additional tenements, Arrow will issue a further AU$125,000 in shares. Leeuwin will hold a 30 per cent free-carried interest through to a decision to mine, at which point it can either contribute capital or convert its stake to a 1.5 per cent gross revenue royalty.
The target area lies less than 15 kilometres from the world-class 65 million tonnes per annum Robe River joint venture operations, operated by Rio Tinto. Previous mapping identified surface channel iron deposit (CID) mineralisation extending over a strike length of more than two kilometres and a width exceeding 250 metres, even cropping out on the verges of the North West Coastal Highway. The tenure also offers potential base metal upside, targeting potential copper-gold extensions from Arrow’s Ava target.
Arrow Managing Director David Flanagan said: “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.”
The transaction represents a low-cost way for Leeuwin to unlock value from Arrow’s Yarraloola project, said Leeuwin Executive Chairman Christopher Piggott.
“Arrow’s team knows channel iron deposits and this part of the Pilbara well, and bringing them in to fund and drive exploration gives Leeuwin exposure to a compelling iron ore and copper opportunity,” he said.
“This enables us to maintain our focus and capital on advancing the Marda Gold Project, while generating value from non-core assets.”
Arrow plans to initiate drill testing across the target area as soon as practical, with results guiding its decision to exercise the option over the remaining permits.
