The $10 million is being priced at 0.5c per share.
Arrow will have cash of about $12-13 million following the raising and a pro-forma enterprise value today of somewhere in the order of $25 million.
Meanwhile, Arrow has also agreed to outlay $2 million to fully consolidate ownership of Simandou North.
It had 33.3% previously, and the $2 million payment reported today will accelerate the process to 100% ownership.
Simandou North is 40km north of the world’s largest high-grade iron project, being developed by Rio Tinto and Chinese enterprises.
“Keep in mind the tenement is along-strike from the world’s largest high-grade iron ore project, and it hosts 40km of strike of the same host rock formation,” Flanagan told shareholders.
“Before Arrow started exploration in 2023, no one had ever drilled and assayed a hole for iron on the tenement, and it is also next to a multi user railway due for commissioning next year.”
Flanagan has extensive iron ore experience from his time at Atlas Iron in the Pilbara region earlier this century.
Arrow plans to drill an initial 150 holes.
Shares in the company were down about 28.5% to 0.5c following the announcement, capitalising Arrow at $38 million.
