Arrow Minerals Ltd (ASX:AMD) is set to further divest its non-core Australian assets after agreeing to sell its 100% interest in the Strickland Copper-Gold Project in Western Australia to Dreadnought Resources Ltd (ASX:DRE).
It will, however, retain a total 1% net smelter return royalty for minerals mined by or on behalf of Dreadnought on the project.
Arrow will receive a $20,000 cash payment upon the signing of a sale and purchase agreement and a further A$280,000 in cash and 2.35 million fully paid ordinary shares in Dreadnought at settlement, expected before the end of this month.
A further cash payment of $300,000 will be made by November 30, 2022, and on identification and reporting of JORC-compliant inferred mineral resource of more than 500,000 ounces of gold equivalent, Dreadnought will pay Arrow $1 million cash.
“Free to focus on West Africa”
Arrow managing director Hugh Bresser said: “This transaction realises potential value for shareholders of both Arrow and Dreadnought.
“Dreadnought is 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.”
Non-core divestment strategy
This sale follows Arrow’s previous disposal of 90% of the Malinda Lithium Project as the company continues to implement its strategy to divest its non-core Australian assets
The company's strategic focus is to deliver long-term value to shareholders through the discovery and development of economic mineral deposits in West Africa.
It will continue to advance the Vranso Project in Burkina Faso toward resource definition while seeking additional growth opportunities in the region.