Upon execution of the Agreement, Electrostate paid Arrow a non-refundable deposit of $100,000 and will pay an additional $400,000 within thirty days
Electrostate will purchase 90% of Arrow. (Credit: Khusen Rustamov from Pixabay)
Arrow Minerals Limited (ASX: AMD) (Arrow, or the Company) is pleased to announce that it has renegotiated commercial terms with Electrostate Pty Ltd (Electrostate). Under the new binding agreement Electrostate will purchase 90% of Arrow (Malinda) Pty Ltd, the holding company of the Malinda Lithium Project in Western Australia, for total cash consideration of A$500,000. Arrow retains a 10% free-carried interest in Arrow (Malinda) Pty Ltd through to a decision to mine.
The new agreement supersedes the previously announced arrangement between Arrow and Electrostate (see ASX announcement from 23 August 2021). Under the new terms Arrow and Electrostate have entered into a Share Sale Agreement (Agreement) and associated Shareholders’ Agreement pursuant to which Electrostate will purchase a 90% equity interest in Arrow (Malinda) Pty Ltd and Arrow will retain a 10% non-diluting free-carried interest through to a decision to mine. Key terms are set out at Appendix 1.
Arrow (Malinda) Pty Ltd owns three granted Exploration Tenements, E09/2169, E09/2170 and E09/2283.
Upon execution of the Agreement, Electrostate paid Arrow a non-refundable deposit of $100,000 and will pay an additional $400,000 within thirty days.
The Malinda Lithium Project extends over an area with pegmatites and associated minerals in the Gascoyne Province of the Capricorn Orogen. Historical workings recorded the presence of highly anomalous lithium and tantalum (see ASX announcement from 9 October 2017). Arrow has previously completed geochemical, geophysical, hyperspectral surveys and limited drilling on the tenements.
Managing Director Hugh Bresser said: “This new agreement provides a win-win outcome for shareholders of both companies. Arrow receives a cash injection that allows the Company to advance its West African assets while retaining significant exposure to the Malinda Lithium Project through its free-carried interest.”
Source: Company Press Release