Australia-based Arrow Minerals has agreed to acquire the remaining 39.5% stake in Singapore’s Amalgamated Minerals, which owns a majority stake in the Simandou North Iron Project in Guinea, West Africa.

Arrow Minerals currently owns beneficial rights of 33.3% in the Simandou North Iron Project.

According to the non-binding term sheet signed in July 2022, the Australian company agreed to acquire up to 60.5% of Amalgamated Minerals.

Under the latest term sheet, Arrow Minerals will undertake a pre-feasibility study for the Simandou North permit or spend A$15m ($9.7m), whichever is less. This would allow Arrow Minerals to increase its stake in the project to 80%.

To increase its project stake to 90%, Arrow Minerals is required to complete a feasibility study on the project or spend an additional A$22.5m, whichever is less.

Furthermore, the Australian company can earn a 100% stake in the project once a decision is made by Amalgamated Minerals to mine in exchange for a $1 per tonne royalty.

Arrow Minerals managing director Hugh Bresser said: “Establishing these commercial terms with the shareholders of Amalgamated is a major step forward for Arrow. It provides a road map for Arrow to advance to 100% ownership of the Simandou North Iron Project.

“This outcome provides clarity to shareholders on the future ownership structure for the project and enables us to advance our exploration activities and development plans with security and confidence.”

The Simandou North Iron Project comprises exploration permit 22967, located at the northern end of the Simandou Range, which is said to host the world’s largest undeveloped high-grade iron deposits.