Join our daily newsletter At The Bell to receive exclusive market insights
- Arrow Minerals (AMD) will sell its Strickland Copper Gold Project in Western Australia to Dreadnought Resources (DRE)
- For the purchase, Dreadnought will pay $600,000 in cash through staged payments and issue Arrow over 2.3 million shares
- Arrow will also receive a $1 million cash payment on a mineral resource of 500,000 ounces of gold equivalent and retain a one per cent net smelter return royalty
- Arrow is divesting from its West Australian assets to focus on its West Africa growth strategy
- AMD is up 60 per cent to trade at 0.4 cents per share, while Dreadnought is steady to trade at 4.5 cents at 12:43 pm AEST
Arrow Minerals (AMD) is set to sell its Strickland Copper Gold Project in Western Australia to Dreadnought Resources (DRE).
Strickland is located 200 kilometres north of Southern Cross and covers portions of four Archaean greenstone belts.
For the purchase, Dreadnought will pay $600,000 in cash through staged payments and issue Arrow over 2.3 million shares.
Arrow will also receive a $1 million payment on a mineral resource of 500,000 ounces of gold equivalent and retain a one per cent net smelter return royalty.
Arrow is divesting from its West Australian assets to focus on its West Africa growth strategy.
Earlier this year, the company sold 90 per cent of its Malinda lithium project to Electrostate.
“This transaction realises potential value for shareholders of both Arrow and Dreadnought,” Arrow Managing Director Hugh Bresser said.
“Dreadnought are actively engaged in Western Australian minerals exploration and Strickland presents an advanced project, with copper and gold drill ready targets.
“Through this transaction Arrow also retains an interest in the success of the Strickland Copper Gold Project, whilst being free to focus on its West Africa projects.”
Dreadnought commented on the purchase earlier this week.
On the market, AMD was up 60 per cent to trade at 0.4 cents per share, while Dreadnought was steady to trade at 4.5 cents at 12:43 pm AEST.
