Leeuwin Metals Secures JV with Arrow over Pilbara Iron and Copper Tenements

Strategic Joint Venture Unlocks Pilbara Iron and Copper Potential

Leeuwin Metals Ltd (ASX:LM1) has struck a deal with Arrow Minerals Limited (ASX:AMD) that hands Arrow a 70% joint venture stake in a Pilbara iron ore tenement application adjacent to Arrow’s Yarraloola Copper Project. The tenement, E08/3668, boasts over 2.4 kilometres of surface-exposed, direct-shipping grade channel iron deposit (CID) mineralisation, a prized style of iron ore that underpins some of the region’s most productive mines.

Arrow also secured a 12-month option to acquire 70% interests in two further tenements, E08/3719 and E08/3777, expanding the joint venture footprint to 319 square kilometres of highly prospective ground. Leeuwin will retain a 30% interest in all tenements, free-carried through to a Bankable Feasibility Study and Decision to Mine, effectively outsourcing exploration risk and expenditure to Arrow while maintaining upside exposure.

Infrastructure and Copper Upside Add Appeal

The tenements lie less than 15 kilometres from Rio Tinto’s Robe River Joint Venture iron ore operations, a world-class mining and logistics hub producing 65 million tonnes per annum. This proximity offers a significant advantage in terms of infrastructure access, including rail and port facilities, which can materially reduce development costs if the deposits prove economic.

Arrow has flagged potential copper upside in the initial joint venture tenement, suggesting it may extend the strike of its Ava copper-gold volcanogenic massive sulphide (VMS) target at Yarraloola. This adds a valuable dimension to the project, which otherwise centres on iron ore mineralisation consistent with channel iron deposits typical of the Hamersley Province.

Deal Terms and Strategic Implications for Leeuwin

As consideration, Arrow will issue Leeuwin $125,000 worth of shares for the initial 70% interest, with a further $125,000 payable in shares if the option on the additional tenements is exercised. All shares will be subject to a six-month voluntary escrow period. Leeuwin’s 30% free-carried interest means it will not contribute to exploration or development costs until a Decision to Mine is reached, at which point it can choose to contribute, sell its interest at fair market value, or convert to a 1.5% gross revenue royalty.

Leeuwin’s Executive Chairman, Christopher Piggott, described the arrangement as a low-cost way to unlock value from non-core assets while focusing capital and management attention on the company’s flagship Marda Gold Project. This approach preserves Leeuwin’s balance sheet and allows it to benefit from exploration success without immediate expenditure.

Next Steps and Market Watch

Arrow plans to commence drilling as soon as practical to test the iron ore target. The results will inform its decision to exercise the option over the two additional tenements. The broad, subtle landform and the known variability in CID thickness highlight the importance of drilling to define the scale and grade potential.

The market will be watching for the initial drill results, which will provide the first concrete indication of the project’s economic prospects. Leeuwin’s retention of a free-carried interest through feasibility offers shareholders exposure to any upside without immediate dilution or capital outlay.