Arrow Minerals Limited has announced a strategic amendment to its Share Purchase Option Agreement for the Niagara Bauxite Project in Guinea, underscoring its commitment to the long-term development of this key West African asset. As per the revised terms, the first milestone payment has been deferred until the project's permit is renewed or granted to an Arrow-related entity for a minimum term of two years, with an expiry date beyond June 2027.
The second milestone payment, payable in cash or shares, has been made conditional on the declaration of a significant mineral resource. Suppose the permit renewal is granted to an Arrow-related entity, and Arrow chooses to advance the project within 12 months of the renewal. In that case, the vendor of the Niagara Bauxite Project will remain entitled to receive the $2,000,000 consideration payable in cash or Arrow shares (subject to shareholder approval) along with the agreed royalty.
These changes aim to align project development with critical regulatory milestones and reduce upfront financial risk, ensuring that shareholder value is maximised as the project advances. Arrow Minerals remains committed to delivering shareholder value through the discovery and development of high-potential mineral assets.
Coinciding with this strategic move, Arrow had achieved a significant exploration breakthrough in March this year by declaring a maiden JORC-compliant mineral resource of 185 million tonnes at its Niagara Bauxite Project. This initial estimate revealed an average grade of 42.3 per cent aluminium oxide (Al₂O₃) and just 2.7 per cent silicon dioxide (SiO₂), a high-quality bauxite profile that is in strong demand from global alumina refineries. The resource also included a higher-grade subset of 138 million tonnes grading 44 per cent Al₂O₃, and a premium portion of 48 million tonnes at 48.2 per cent Al₂O₃, further reinforcing the project's value proposition.
Also Read: Bauxite prices dip owing to declined demand and supply in first half of 2025
Importantly, over 75 per cent of the resource has been classified in the indicated category, demonstrating a high level of geological confidence and positioning the project for swift advancement into the following stages of feasibility and development. This announcement not only fulfils a key condition under the amended agreement but also establishes a robust technical foundation for Arrow to pursue long-term offtake partnerships and funding arrangements.
The company is also currently progressing two key projects in Guinea, West Africa - the Niagara Bauxite Project, for which it has an option to acquire, and the Simandou North Iron Project (SNIP).
Both projects are strategically located within trucking distance of the Trans-Guinean Railway (TGR), a major infrastructure development being constructed by the Winning Consortium Simandou. The proximity of the Niagara Project to the TGR presents significant logistical advantages, particularly through future access to shared rail and port facilities. This connectivity is expected to play a critical role in enhancing the efficiency and cost-effectiveness of transporting materials, thereby supporting the overall development and commercial viability of the project.
Looking ahead, Arrow Minerals plans to complete a scoping study by mid-2025, targeting the high-grade zones first to accelerate early-stage cash flow. In parallel, the company is progressing with metallurgical testing, environmental and community baseline assessments. It is already engaged in discussions with potential offtake partners, particularly those seeking secure supplies of premium bauxite. Together, the amended acquisition terms and the substantial maiden resource mark a pivotal moment for Arrow Minerals. These developments not only de-risk the path to acquisition but also elevate the Niagara Bauxite Project as a standout opportunity in the global bauxite sector, one that is backed by quality geology, growing infrastructure, and a clear strategic roadmap.
Image Source: Image Source: S Purohit (@subhapurohit) / X
Responses
