Highlights

• Arrow Minerals (ASX: AMD) has executed a binding option agreement to acquire the Pannawonica Iron Ore Project, which hosts a resource of 62.5Mt at 53.4% Fe.

• The project sits on granted Mining leases with native title agreements in place and is located approximately 100km from port infrastructure.

• Arrow is pursuing a multi-mine, multi-port strategy across its 1,640km² West Pilbara landholding, with its experienced team having previously built five mines in five years.

• The company also holds the world-class Niagara Bauxite Project in Guinea and the Yarraloola Copper-Gold Project in the WA Pilbara, providing a diversified exploration portfolio.

Arrow Minerals Limited (ASX:AMD), an ASX-listed multi-commodity explorer and developer, has entered a binding agreement granting it the option to acquire the Pannawonica Iron Ore Project from Red Hill Minerals. The project hosts a total resource of 62.5 million tonnes at a grade of 53.4% iron, spread across the Redgate and Whitegate deposits. With both granted mining leases and an existing native title agreement in place, the project stands out as an immediately developable asset in a region well supported by established port and logistics infrastructure.

The West Pilbara Iron Ore Strategy

Arrow Minerals is building a portfolio of iron ore Assets across the West Pilbara with a focus on direct-shipping ore (DSO) deposits that can be brought to production quickly and at modest capital expenditure. The company's strategy targets deposits located within approximately 100km to 300km of port facilities, with a staged expansion model that aims to progress multiple mine sites simultaneously. The Pannawonica project, located about 100km from port, anchors this strategy given its proximity and the fact that key regulatory approvals are largely in place.

Arrow's Leadership team brings a track record of delivery in this exact setting. Members of the board and management team were previously involved in building five iron ore mines in five years in the Pilbara, contributing to the growth of Atlas Iron from a small exploration company to one of Australia's top 50 listed entities. The company intends to draw on this institutional knowledge to fast-track development studies and infrastructure access for the Pannawonica and adjacent projects.

Key Terms of the Option Agreement

Under the binding agreement, Arrow has paid an option fee to Red Hill Minerals in Arrow shares, valued at a 20-day volume-weighted average price prior to execution. The company will cover the project's annual Holding Costs and committed expenditures during the option period of 12 months. To exercise the option and proceed to full acquisition, Arrow must satisfy certain conditions, including raising a minimum of $5 million in capital and receiving confirmation from ASX that the transaction does not constitute a significant change to its activities. Red Hill Minerals will retain a gross sales Royalty on future mineral production from the tenements.

Broader Portfolio and Next Steps

Beyond iron ore, Arrow Minerals is actively developing its Niagara Bauxite Project in Guinea, which hosts a substantial maiden mineral resource underpinning a world-class development opportunity. In the WA Pilbara, the company's Yarraloola tenements hold copper-gold exploration targets that are being prepared for drilling in early 2027. Arrow's diversified asset base positions it to pursue value creation across multiple commodities and geographies, while the West Pilbara iron ore portfolio remains the near-term operational focus. Heritage surveys have been booked at Yarraloola in late 2026 to enable drill testing of iron ore and copper-gold targets.

Key Insights

The Pannawonica Iron Ore Project's granted mining leases and existing native title agreements significantly de-risk Arrow's pathway to production compared to greenfields projects.

The near-port location and DSO-style mineralisation align with the company's low-capex, speed-to-market strategy, targeting cashflow-positive outcomes ahead of larger capital commitments.

Arrow's management experience in building multiple Pilbara iron ore operations from scratch provides operational credibility that is rare among junior ASX-listed miners.

Investors should note that the option exercise is conditional on completing a capital raise of at least $5 million, making upcoming funding activity a key near-term catalyst.