Arrow Minerals Ltd (ASX:AMD) has secured an initial 33.3% beneficial interest in Amalgamated Minerals Pte Ltd, holder of the Simandou North Iron Project in Guinea, West Africa, as part of the first stage of a definitive agreement between the two companies.
Stage 1 of the agreement was completed on December 31 last year, with Arrow consequently transferring 500 million ordinary shares to ROPA Investments (Gibraltar) Limited and its nominees under the terms of the agreement.
Targeting green steel market
“Completion of Stage 1 marks a significant step in Arrow’s entry into the emerging green steel market,” Arrow Minerals managing director Hugh Bresser said.
“With numerous global steel producers moving rapidly to reduce their carbon footprint, the demand for high-grade clean iron ore will increase.
“Arrow is aiming to be able to provide material into this expanding market.”
Under the terms of the binding agreement with Amalgamated, Arrow can acquire up to a 60.5% controlling interest in the Simandou North Iron Project, which sits within the premium iron belt in West Africa, at the northern end of the Simandou Range.
Arrow has a clear road map to extend these rights to 60.5% within 24 months. The company aims to systematically advance the Simandou North Iron Project over the coming months to identify areas of high-grade iron within the project area.
The Simandou area is host to one of the largest undeveloped high-grade iron deposits in the world, represented by Rio Tinto’s Simandou Project, which holds a total measured, indicated and inferred mineral resource estimate of 2 billion tonnes grading 65.5% iron.