Independence will acquire a 51% interest in Arrow’s Plumridge Nickel Project for $1.5 million and an 11% strategic equity interest in Arrow for $1 million.
Arrow and Independence will form the Plumridge Joint Venture, covering eight exploration licences totalling 2,500 square kilometres in the Fraser Range province of Western Australia.
Partnering with the largest player in Fraser Range
It is worth noting that Independence is the largest tenement holder and explorer in the Fraser Range, with 14,500 square kilometres of exploration licences under management.
In addition, Independence owns the Nova Nickel Project, which is located 200 kilometres south of the Plumridge Nickel Project.
Over the next 12 months, the companies are planning to test geophysical datasets acquired over the past three years at Plumridge.
This will include aircore drilling of specific targets and reverse circulation/diamond drilling of electromagnetic conductors.
Strategic investment + oversubscribed placement
Independence is subscribing for $1 million in Arrow shares at a price of $0.029 per share.
Arrow has also completed a placement to sophisticated investors to raise $2.65 million on the same terms as the Independence placement.
The placement was heavily oversubscribed with support from new institutional and professional investors together with existing shareholders.
Well funded to fast-track gold and lithium drilling programs
The proceeds of the new placements will be used to accelerate exploration at Arrow’s 100%-owned Barlee Gold and Malinda Lithium Projects in 2018, including:
- 50,000 metres of aircore and 15,000-20,000 metres of reverse circulation drilling across the T1, T2, T6 and T8 prospects at the Barlee Gold Project; and
- detailed aerial survey to refine targets for 10,000-15,000 metres of reverse circulation drilling of high-grade lithium pegmatites at the Malinda Lithium Project.
Steven Michael, managing director, said: “IGO’s Fraser Range exploration budget for FY2018 is $21 million, including significant airborne EM, ground EM and drilling programmes to be undertaken at Plumridge.
“Arrow now has sufficient funding to aggressively explore its Barlee Gold and Malinda Lithium Projects and has a supportive major shareholder with gold and nickel assets in Western Australia.”