Zanaga Iron Ore Company (ZIOC) has entered a binding term sheet with Red Arc Minerals for a staged investment of up to $25 million to advance its Congo iron ore project.

The first tranche of $25 million will fund pre-production work, earning Red Arc a 20% stake in the project subsidiary. A subsequent option allows Red Arc to invest $125 million more for an additional 67.5%, raising its total ownership to 87.5%, while ZIOC retains a 1% royalty. The transaction is structured to be non-dilutive for the listed parent company ZIOC.

The deal remains subject to due diligence, definitive agreements, and shareholder and regulatory approvals.