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Arrow Minerals (ASX:AMD) raises $3M to accelerate exploration

Materials
ASX:AMD      MCAP $26.44M
04 May 2021 18:00 (AEDT)

Arrow Minerals (AMD) has received commitments to raise $3 million to accelerate its drilling and exploration programs in West Africa.

Sophisticated and professional investors provided the funds via the issue of 500 million fully paid ordinary shares at 0.6 cents per share. The issue price represents a 24.6 per cent discount to the 20-day VWAP of 0.8 cents per share.

Directors of the company also participated in the placement, subscribing for 9,501,333 shares.

Funds raised through the placement will go towards high impact gold exploration in West Africa and gold and base metal exploration in Australia. This will include drilling at the Divole West, Divole East and Dyapya prospects.

“This capital raising will allow us to accelerate our exploration efforts and rapidly grow known gold mineralisation with the goal of unlocking a new gold district in the Boromo Greenstone Belt in southwest Burkina Faso,” said Arrow’s Managing Director, Howard Golden.

“The accelerated programme in Burkina Faso will continue in parallel with the ongoing copper-gold exploration in Western Australia.”

The placement is proposed to be completed in two tranches. Tranche one of up to 133,238,176 shares will be issued by May 11, 2021, with tranche two seeing up to 166,904,560 shares, including 9,501,333 shares subscribed by directors of the company, issued before July 2021.

Arrow Minerals shares are trading flat at 0.7 cents at 4:30 pm AEST.

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