Arrow Minerals Ltd (ASX:AMD) will receive $500,000 cash following the sale of a 90% interest in the Malinda Lithium Project in Western Australia after renegotiating commercial terms with Electrostate Pty Ltd.
Under the new agreement, Arrow will retain a 10% non-diluting free-carried interest to a decision to mine.
West African gold focus
The company plans to channel the proceeds of the sale of its lithium interest into advancing West African gold opportunities.
Managing director Hugh Bresser said: “This new agreement provides a win-win outcome for shareholders of both companies.
“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.”
The new agreement supersedes a previously announced arrangement between Arrow and Electrostate in August 2021.
Read: Arrow Minerals Ltd inks earn-in agreement to advance non-core Malinda Lithium Project
About Malinda Project
The Malinda Lithium Project extends over an area with pegmatites and associated minerals in the Gascoyne Province of the Capricorn Orogen.
Historical workings have recorded the presence of highly anomalous lithium and tantalum.
Arrow has previously completed geochemical, geophysical, hyperspectral surveys and limited drilling on the tenements.
This activity uncovered:
- 23 metres at 0.98% lithium oxide;
- 2 metres at 1.71% lithium oxide; and
- 11 metres at 323 parts per million tantalum pentoxide.