The placement includes participation by directors of the company who have subscribed for 13 million shares, which will be subject to shareholder approval at Arrow’s next general meeting.
The balance of 54 million shares will be issued under Listing Rule 7.1A on March 30.
Arrow plans to use the funds to maintain its exploration assets and its license to operate in Burkina Faso and Australia, which will put the company in a position to advance its exploration strategy in the coming months.
Funds will also be used for working capital.
In the short term the Arrow management will be first and foremost protecting the health of its employees and the communities in which they work.
Arrow has initiated a process to reduce its operating costs and management overheads to ensure that exploration of its high-quality assets, focussing on the recent significant Dassa gold discovery in Burkina Faso, can recommence when possible considering global health and macro-economic conditions.
Fraser Range Nickel Project expansion
The company and its partner IGO Ltd (ASX:IGO) have recently expanded the size of their Plumridge Nickel Project in the Fraser Range region of Western Australia.
Three exploration licences covering 160 square kilometres will increase the existing project by around 10% to 2,000 square kilometres.
During the current calendar year, IGO, as manager, is planning to undertake diamond drilling following up last year’s results.
It also plans to conduct infill air core drilling and moving loop electromagnetic (EM) surveys to test geochemical and airborne EM anomalies.