Arrow Minerals has signed a binding agreement to secure an option to acquire the Pannawonica Iron Ore Project from Red Hill Minerals.
The project is located about 20km west of Pannawonica in the West Pilbara region of Western Australia.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Arrow has been granted a 12-month exclusive option to purchase 100% of the project, which contains a reported total mineral resource estimate of 62.5 million tonnes (mt) at 53.4% iron.
The consideration for securing the option includes A$150,000 in Arrow Minerals shares.
If Arrow chooses to exercise the option, it can acquire the tenements for a further A$1m, payable either in cash or additional company shares.
The transaction is subject to several conditions, including Arrow raising a minimum of A$5m and receiving confirmation from the Australian Securities Exchange regarding the nature of the transaction, or alternatively, obtaining shareholder approval.
Arrow managing director David Flanagan said: “This is a company-making transaction. Our priority focus will be to find the fastest path to production and cashflows.
“In iron ore, it’s all about logistics. I am not aware of another undeveloped iron ore deposit in Australia that is closer to a port, on granted mining licenses, with signed heritage agreements, and with flora and fauna studies well advanced.
“The race is on to see how quickly we can become the Pilbara’s next mid cap iron ore exporter.”
Pannawonica Iron Ore Project comprises four granted mining leases, two exploration licences, and one miscellaneous licence, covering 49.6km².
The project’s resources are distributed across two deposits, Whitegate and Redgate.
To date, substantial drilling has occurred, with records showing 465 reverse circulation (RC) and diamond drill holes totalling 14,475m. Environmental studies and native title agreements have also been progressed.
If the acquisition proceeds, Red Hill Minerals will retain a 1.5% gross sales royalty on mineral sales from the tenements, with an additional 0.25% royalty on future projects within a set area.
The two companies have also agreed to explore a potential cooperation arrangement regarding further opportunities in the West Pilbara region.
The option agreement includes standard terms such as minimum expenditure commitments, rights to withdraw, and requirements for definitive arrangements to be agreed within set timeframes.
In July 2026, Arrow completed a gravity survey across three targets at its Yarraloola Copper Project in the Pilbara region.
