Arrow Minerals Limited (ASX:AMD) has received binding commitments to raise $5.5 million before costs through a placement of 275,000,000 new fully paid ordinary shares at an issue price of $0.02 per share, with proceeds directed toward advancing the Pannawonica Iron Ore Project and broader West Pilbara iron ore exploration.

Key Points

  • Arrow Minerals has received binding commitments to raise $5.5 million before costs via a placement at $0.02 per share.
  • The placement comprises 275,000,000 new fully paid ordinary shares, with 269,250,000 to be issued under existing Listing Rule 7.1 and 7.1A capacity.
  • Directors have committed to subscribe for $115,000 (5,750,000 shares), subject to shareholder approval at a forthcoming General Meeting.
  • Proceeds will be applied toward exploration and resource drilling, product testwork and marketing, development studies for Pannawonica, the Niagara work program, and working capital.
  • Tranche 1 placement shares are scheduled for settlement on 18 November 2026, with allotment on 19 November 2026.

Placement Structure and Joint Lead Managers

The placement comprises the issue of 275,000,000 new fully paid ordinary shares at $0.02 per share. A total of 269,250,000 New Shares will be issued under the company's existing placement capacity — 96,096,114 shares under Listing Rule 7.1 and 173,153,886 shares under Listing Rule 7.1A. The remaining 5,750,000 shares, representing the Directors' $115,000 subscription commitment, are subject to shareholder approval at an upcoming General Meeting. Salient Corporate, BMO Capital Markets and Morgans Corporate Limited acted as Joint Lead Managers for the placement.

Pannawonica Iron Ore Project Binding Option Agreement

The placement follows a binding option agreement to acquire the Pannawonica Iron Ore Project from Red Hill Minerals (ASX:RHI). Under the agreement, Arrow paid a $150,000 option fee in Arrow shares, priced at the 20-day VWAP prior to execution. Arrow has a 12-month option period in which to exercise its right to acquire 100% of the project for a further $1,000,000, payable in cash or shares at Arrow's election. From the date of execution, Arrow will cover combined annual holding costs and expenditure commitments of $370,614. The company has also accumulated a Pilbara iron ore landholding of over 1,600 square kilometres.

Placement Timetable and Use of Funds

According to the filing, the placement was announced and trading resumed on 12 November 2026, following a trading halt on 10 November 2026. Settlement of Tranche 1 placement shares is scheduled for 18 November 2026, with allotment on 19 November 2026. The dates for the Notice of General Meeting, the General Meeting itself, and the issue of Tranche 2 shares to participating Directors are yet to be confirmed. In addition to existing cash reserves, proceeds are proposed to be applied toward exploration and resource drilling in the Pilbara, product testwork and marketing, development studies for Pannawonica, the Niagara work program, and working capital and offer costs.