- Arrow Minerals (AMD) will raise $3.2 million to fund drilling and exploration at various prospects in Burkina Faso and the Strickland Project in WA
- Specifically, Arrow will conduct a two tranche placement to raise $2.2 million
- The placement will issue over 366.6 million shares to sophisticated and professional investors at 0.6 cents each
- Additionally, Arrow will undertake an issue of one million convertible notes to raise $1 million
- Drilling will kick off next month at the Dassa gold discovery in Burkina Faso and exploration at Strickland will begin next quarter
- Company shares have dropped 22.2 per cent and are trading for 0.7 cents each
Arrow Minerals (AMD) has received commitments to raise $2.2 million through a placement to fund drilling and exploration in West Africa and Western Australia.
Under the placement, up to 366,666,666 fully paid ordinary shares will be issued to sophisticated and professional investors at a price of 0.6 cents per share.
The placement will be completed in two tranches. The first will issue up to 132,257,889 shares on or around June 23. Tranche two will issue up to 137,303,518 shares, which is subject to shareholders approval at a general meeting that is scheduled to take place on or around July 31.
Additionally, Arrow will issue one million unlisted convertible notes at a face value of $1 to raise $1 million.
The convertible notes have an eight per cent interest per annum and a maturity date of June 15, 2024.
This results in a total raising of $3.2 million.
“This is an exciting time for Arrow as we are now planning expanded drilling programs at the Dassa gold discovery in Burkina Faso targeting an increase in the size of the existing mineralisation,” Managing Director Howard Golden said.
Specifically, Arrow will conduct further drilling at Dasso to increase the size of the existing gold discovery along the three-kilometre long mineralised corridor. It will also analyse stream sediment samples at Boulsa, conduct soil and auger sampling at Divole East, which will be followed up by reverse circulation drilling in quarter four.
The funds will also go towards soil sampling and follow up work at the Nako and Dyapya prospects in Burkina Faso later this year and early next year.
In Western Australia, Arrow is planning to conduct electromagnetic surveys over copper-gold targets at the Strickland Project.
Company shares have dropped 22.2 per cent and are trading for 0.7 cents each at 2:24 pm AEST.