Arrow Minerals Ltd. has entered into a binding agreement to acquire 100 per cent of the Pannawonica iron ore project in Western Australia’s West Pilbara region from Red Hill Minerals.
Under the terms of the agreement, Arrow has issued AU$150,000 worth of fully paid shares as an option fee, agreeing to cover holding costs and minimum expenditure commitments during the 12-month evaluation window.
To exercise the option and acquire the project outright, Arrow must complete a capital raise of at least AU$5 million and pay AU$1 million in cash or shares at its discretion.
Red Hill Minerals will retain a 1.5 per cent gross sales royalty and provide ongoing informal strategic support for regional consolidation.
The Pannawonica project features a total mineral resource estimate of 62.5 million tonnes at 53.4 per cent iron across the Whitegate and Redgate deposits.
Modelled on the well-known Channel Iron Deposit style successfully mined nearby by the Rio Tinto-operated Robe River joint venture, the project benefits from low stripping ratios and an extensive historical drilling database comprising 465 reverse circulation and diamond holes for 14,475 metres.
Furthermore, the asset comes with granted mining leases, signed native title and heritage agreements, and well-advanced flora and fauna studies.
Arrow Managing Director David Flanagan described the transaction as company-making, highlighting that the asset’s advanced development status, existing infrastructure proximity, and granted permits provide a fast-tracked pathway toward production.
“Our priority focus will be to find the fastest path to production and cashflows. In iron ore, it’s all about logistics,” Flanagan said.
“I am not aware of another undeveloped iron ore deposit in Australia that is closer to a port, on granted mining licences, with signed heritage agreements, and with flora and fauna studies well advanced.
“The race is on to see how quickly we can become the Pilbara’s next mid cap iron ore exporter.”
The company has already commenced preliminary development studies.
