Arrow yesterday said under the farm-in deal, it has an option to earn up to a 50% interest in the CSM rights in the 6207 square kilometre tenement.

Arrow, which took up a cornerstone $1 million seed capital investment in Pure, also reached an agreement in June to farm-in to two of its Queensland projects to earn up to 50% interest in each.

Yesterday’s announcement was the first of those farm-in opportunities and the option to farm-in to the other tenement remains in place, the company said.

Under the agreement, Arrow must spend a minimum $400,000 during the second permit year for which it will be entitled to a 15% interest.

It can earn a further 15% interest if it spends another $850,000 during the third permit year and a final 20% interest by spending another $200,000 during the fourth permit year.

Arrow also has a further option to farm-in to one of Pure’s application tenements in Queensland – either ATP 831P, ATP 756P or ATP 806P, once their application is granted.

ATP 759P is in the Bowen Basin immediately adjacent to Arrow’s ATP 364P, which contains the Moranbah Gas Project.

Arrow holds a 14% interest in Pure, which via options could increase to approximately 25% on a fully diluted basis.