Arrow Minerals Ltd (ASX:AMD) has received commitments from qualified sophisticated and professional investors to raise $2.2 million via the placement of shares at 0.6 cents per share.
In addition, Arrow will undertake an issue of unlisted convertible notes to raise $1 million, resulting in a total raising for Arrow of $3.2 million.
The proceeds will be used to fund expanded exploration and drilling programs at Arrow’s gold exploration projects in Burkina Faso including the Dassa gold discovery, and geophysical surveys at the Strickland coper-gold project in WA.
Expanded drilling in Burkina Faso
Arrow managing director Howard Golden said: “Arrow welcomes the support demonstrated for the capital raising by existing shareholders and new investors in the company.
“This is an exciting time for Arrow as we are now planning expanded drilling programs at the Dassa gold discovery in Burkina Faso targeting an increase in the size of the existing mineralisation.
“Recently defined copper-gold anomalism at Strickland in Western Australia will also see a first round of exploration starting with geophysical surveys and geological mapping.
“This capital raising puts Arrow in a strong position to explore its high quality portfolio of assets well into 2021.”
Use of proceeds
Funds raised pursuant to the capital raising will be used for:
- Dassa, Burkina Faso - further drilling (commencing July 2020) to increase the size of the existing gold discovery (announced January 2020) along the 3 kilometres long mineralised corridor;
- Boulsa, Burkina Faso - analysis of stream sediment samples and follow up as appropriate (Q3 2020);
- Divole East, Burkina Faso - soil and auger sampling - all good results followed up by RC drilling (Q4 2020);
- Nako, Burkina Faso - soil sampling and follow-up work indicated by soil results (Q4 2020);
- Dyapya, Burkina Faso - soil sampling and any follow-up work as indicated by soil results (Q1 2021); and
- Strickland Gold/Copper Project, Western Australia – electromagnetic surveys over copper-gold targets.