Arrow Minerals calls in Delta Lithium exec, taps Euroz for raise
Atlas Iron founder David Flanagan is preparing to take the helm at Arrow Minerals.
The Simandou mountains in Guinea contain high-grade iron ore. Rio Tinto
The miner has its broker Euroz Hartleys circulating term sheets to investors with a heavy-hitting new board and management team. The $4 million raised will be used to accelerate its exploration activities for a high-grade resource at the northern extension of its Simandou iron ore project in Guinea.
Arrow’s new-look team will be headed by former Atlas Iron managing director and MACA Ltd director David Flanagan, according to the term sheet. Flanagan was ousted as Delta Lithium boss in September following the arrival of Chris Ellison’s Mineral Resources on the scene. Gina Rinehart’s Hancock Prospecting also tipped into Delta’s $70 million raise last month, as reported by Street Talk.
Also joining the board is former Sirius Resources chairman and NRW Holdings director Jeff Dowling alongside existing directors, Evolution Mining director Tommy McKeith and former head of BCI Minerals Alwyn Vorster.
The raise was structured as a two-tranche placement to raise $3.5 million. An additional $500,000 will be raised via a share purchase plan. Shares were priced at 0.1¢ – a 28 per cent discount to the 20-day volume-weighted average price.
Arrow’s backers will be hoping Flanagan can do the same thing Bill Beament did for Develop Global and Raleigh Finlayson did for Genesis Minerals – turning a penny stock into a household name. They’ll also have their fingers crossed Rinehart and Ellison will come knocking once Flanagan has things up and running. Atlas was ultimately bought by Rinehart in a competitive tussle between Mineral Resources, Fortescue and Hancock.
Arrow holds the tenements that are the northern extension of Simandou (owned by Rio and the Winning Consortium) in Guinea. The deposit has been touted as one of the largest untapped high-grade iron ore deposits in the world. The thesis is that as Africa becomes the new frontier in iron ore, there will be space for smaller players who can either build their own businesses or will eventually get taken out by the big end of town.
The Arrow board said they’ll be participating in the placement. Final bids were called by 1 pm on Tuesday.
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