By Digifin Pty Ltd · About this coverage
Key Points
- Exclusive 12-month option for Arrow Minerals to acquire the Pannawonica Iron Project
- $150,000 upfront option fee payable in Arrow shares
- $1,000,000 in cash or shares on exercise, plus an uncapped 1.5% Gross Revenue Royalty
- Additional uncapped 0.25% GRR over certain deposits within the Area of Influence
- Exercise requires Arrow to secure commitments for a capital raising of at least $5 million
About Red Hill Minerals (ASX:RHI)
Red Hill Minerals Limited is an ASX-listed minerals company headquartered in West Perth. It holds a royalty over the Onslow Iron Project in Western Australia and carries out mineral exploration. Its exploration interests include the West Pilbara Project in Western Australia and the Curnamona Project on the South Australia-New South Wales border.
Red Hill Minerals (ASX:RHI) has entered into a heads of agreement giving Arrow Minerals an exclusive 12-month option to acquire its 100%-owned Pannawonica Iron Project in Western Australia's West Pilbara, in a proposed divestment that would leave Red Hill holding a royalty.
Arrow will pay a $150,000 upfront option fee in its own shares, priced on the 20 day VWAP before the heads of agreement. If the option is exercised, Arrow will pay $1,000,000 in cash or shares at its election and grant an uncapped 1.5% Gross Revenue Royalty on future iron ore sales from the seven Project tenements, plus an uncapped 0.25% GRR over iron ore produced from certain deposits outside the tenements but within a defined Area of Influence. During the option period Arrow is responsible for tenement holding costs, will carry out its own technical and commercial assessment, and may withdraw subject to spending a specified minimum amount. After completion, Red Hill will have a right to match any offer received for a Tenement. Red Hill says the royalties would add to its existing portfolio, which includes a 0.75% FOB Royalty over the Onslow Iron Project.
Exercise is not certain. Before exercise, Arrow must receive binding commitments for a capital raising of at least $5 million, and completion is subject to conditions including any ASX approvals and Ministerial consent. The release does not say when Arrow will decide.
Source: Red Hill Minerals Limited (ASX:RHI), 10 November 2026. Summary content supplied by Digifin Pty Ltd.
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