The issue price of 6 cents per Share represents a 24.63% discount to the 20-day VWAP of 8 cents per share.
Arrow Minerals Ltd (ASX:AMD) has received commitments from qualified sophisticated and professional investors to raise $3 million through the issue of 500 million shares at 6 cents per share.
The placement includes participation by directors of the company, who have subscribed for 9,501,333 shares, the issue of which will be subject to shareholder approval at Arrow’s next general meeting.
Positioned to rapidly grow targets
Managing director Howard Golden said: “Arrow Minerals is now in a position to rapidly define and grow its multiple high-grade gold targets in Burkina Faso, at both its 100%-owned Arrow discoveries and those recently accessed through the recent binding term sheet to enter into a JV agreement over adjacent permits with Trevali Mining.
“The extensive 1,000 square kilometre licence area contains multiple zones of high-grade gold found in recent and historical drilling and sampling.
“This capital raising will allow us to accelerate our exploration efforts and rapidly grow known gold mineralisation with the goal of unlocking a new gold district in the Boromo Greenstone Belt in southwest Burkina Faso.
“The accelerated program in Burkina Faso will continue in parallel with the ongoing copper-gold exploration in Western Australia.”
Two tranches
Arrow will complete the placement in two tranches:
- Tranche 1 – will utilise the company’s existing placement capacity under ASX Listing Rule 7.1 for up to 199,857,264 shares and ASX Listing Rule 7.1A for up to 133,238,176 shares to be issued on or around Tuesday, May 11; and
- Tranche 2 is subject to shareholder approval at a general meeting of shareholders scheduled to take place before July 2021.
The issue price of 0.6 cents per share represents a 24.63% discount to the 20-day VWAP of 0.8 cents per share.
Use of funds
Funds raised will be used to undertake high impact gold exploration in West Africa and gold and base metal exploration in Australia, including:
- Divole West – Further drilling (beginning Q3 2021) to increase size of existing deposit along the 3-kilometre-long mineralised corridor;
- Divole East – Follow-up of significant soil and auger geochemical anomalism with auger and RC drilling (Q2 2021);
- Dyapya – Follow-up of soil geochemical anomalies using auger and RC drilling (Q3 2021);
- Trevali JV permits, regional-scale – stream sediment sampling program to define targets for drill testing (Q2 2021);
- Trevali JV permits, project-scale – RC drilling and auger (Q2 2021) to expand known high-grade mineralisation and define continuity where historical drilling has encountered gold mineralisation; and
- General working capital purposes.