Arrow’s $7M Capital Raise Puts Pressure on Upcoming Resource and Scoping Results

Capital Raising Overview

Arrow Minerals Limited (ASX: AMD) announced a successful capital raising of approximately $7 million through a placement to institutional and sophisticated investors. The placement, priced at A$0.038 per share, represents a modest discount to recent trading prices and was met with strong demand, underscoring growing market confidence in Arrow’s strategic projects in Guinea.

The placement involves the issue of 185 million new fully paid ordinary shares, accompanied by free attaching unlisted options exercisable at A$0.055 within 18 months. The raising will be conducted in two tranches, with the first tranche expected to settle and trade by early February 2025, and the second tranche subject to shareholder approval anticipated in March.

Advancing the Niagara Bauxite Project

Proceeds from the placement will primarily fund the advancement of the Niagara Bauxite Project, where Arrow aims to finalise its maiden JORC resource estimate. This milestone is critical for validating the scale and quality of the bauxite mineralisation, which recent drilling has suggested is world-class in nature.

In addition to resource definition, the company plans to complete a scoping study to assess the project’s economic potential and undertake further drilling and metallurgical test work. These activities are designed to de-risk the project and provide a clearer pathway toward development and production.

Progress at Simandou North Iron Project

Alongside Niagara, Arrow will continue to advance its Simandou North Iron Project. The capital injection will support ongoing commercial studies, metallurgical testing, and environmental permitting processes. Both projects benefit from proximity to the Trans-Guinean Railway under construction, which offers significant logistical advantages for future export.

Market and Investor Sentiment

Managing Director David Flanagan highlighted the strong support from both new and existing shareholders, reflecting a positive market reception to Arrow’s growth strategy. The robust balance sheet resulting from this placement positions the company to accelerate its development timeline and enhance shareholder value.

Joint Lead Managers Euroz Hartleys, Bell Potter Securities, and Canaccord Genuity facilitated the placement, with Salient Corporate advising. The company’s clear focus on creating a streamlined pathway to a starter mine aligns with investor appetite for near-term value creation in the bulk commodities sector.

Looking Ahead

As Arrow moves toward completing its maiden resource estimate and scoping study, the market will be watching closely for results that could validate the projects’ potential and catalyse further investment. The upcoming shareholder meeting to approve the second tranche of the placement and director participation will also be a key event.