Arrow Minerals Signs 12-Month Option to Acquire Pannawonica Iron Project with $150,000 Fee in Shares

Manish Choudhary

10 November 2026 12:56 PM AEDT

Arrow Minerals Signs 12-Month Option to Acquire Pannawonica Iron Project with $150,000 Fee in Shares

Image Source: Krish Capital Pty Ltd

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Arrow Minerals Limited (ASX:AMD) has entered into a heads of agreement with Red Hill Minerals Limited (ASX:RHI) for an exclusive 12-month option to acquire 100% of the Pannawonica Iron Project, a seven-tenement package located in the West Pilbara region of Western Australia near the township of Pannawonica, according to a filing dated 10 November 2026.

Key Points

Arrow Minerals holds an exclusive 12-month option to acquire 100% of the Pannawonica Iron Project, comprising seven tenements in the West Pilbara, Western Australia.
A $150,000 upfront option fee is to be satisfied by the issue of shares in Arrow Minerals, calculated on the 20-day VWAP prior to execution of the heads of agreement.
On exercise of the option, consideration comprises $1,000,000 payable in cash or shares at Arrow Minerals' election, plus an uncapped 1.5% gross revenue royalty on future iron ore sales from the tenements.
An additional uncapped 0.25% gross revenue royalty applies to iron ore produced from certain deposits outside the tenements but within the defined Area of Influence.
A condition precedent requires Arrow Minerals to have received binding commitment from investors to subscribe for at least $5 million under a capital raising prior to exercising the option.

Pannawonica Iron Project Details

The Pannawonica Iron Project is situated in the West Pilbara region of Western Australia near the township of Pannawonica. The project contains a reported mineral resource of 62.5 million tonnes grading 53.4% Fe on granted mining leases. The project tenements are E08/2729, E08/2730, L08/0305, M08/0499, M08/0500, M08/501, and M08/0505. Red Hill Minerals has previously completed technical and development studies on the project, including environmental and heritage assessments, and the project holds granted haul road tenure along with other infrastructure-related approvals and applications.

Option Period Terms and Conditions Precedent

During the 12-month option period, Arrow Minerals is responsible for minimum expenditure, rents, and rates on the tenements, and will conduct its own technical and commercial assessment of the project. The purchaser may withdraw during the option period subject to expending a specified minimum amount on the tenements. Completion of the divestment is subject to standard conditions precedent, including any approvals required by ASX, ministerial consent, and other conditions usual for this type of transaction. Any shares issued at completion will be priced at the same level as the option fee shares.

Red Hill Minerals Retains Royalty Interest and Matching Right

Upon exercise of the option, Red Hill Minerals retains an uncapped 1.5% gross revenue royalty on future iron ore sales from the project tenements and an uncapped 0.25% gross revenue royalty over iron ore produced from certain deposits outside the tenements but within the Area of Influence. Following completion of the transaction, Red Hill Minerals also retains the right to match any offer received by Arrow Minerals in the event of a sale of a tenement. The Pannawonica royalties would add to Red Hill's existing royalty portfolio, which includes royalties over iron ore, gold, and copper projects.

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