North Arrow Minerals (NAR-V) Feb 10, '16 is pleased to announce it has closed the transaction under which Umgeni Holdings International Limited ("Umgeni") has acquired a royalty interest in North Arrow's Redemption Diamond Project for $800,000. Umgeni is a private company of which Christopher Jennings, a director of North Arrow, is a beneficiary of the sole shareholder. The Redemption Diamond Project is located in the Lac de Gras region of the Northwest Territories, approximately 32 km southwest, and 47 km west of the Ekati and Diavik diamond mines, respectively.
North Arrow has received required regulatory approvals of the transaction and, as initially disclosed in North Arrow News Release #16-03 dated January 25, 2016, Umgeni has paid North Arrow $800,000 and acquired the following royalty interests in the Redemption Diamond Project:
a 1.5% gross overriding royalty on diamonds ("GOR") and a 1.5% net smelter returns royalty on base and precious metals ("NSR") for three mineral claims owned 100% by North Arrow;
a 1.25% GOR and 1.25% NSR on 12 mineral claims and 5 mining leases (the "ADD Claims") that are currently under option from Arctic Star Exploration Corp. (TSXV-ADD). These 1.25% royalties will be payable from North Arrow's ultimate interest in the ADD claims and NAR will have sole responsibility for paying them. Under the option agreement with Arctic Star, North Arrow can earn a 55% interest in the properties by incurring $5 million in exploration expenditures prior to July 1, 2017. If North Arrow decides not to proceed beyond 2016 with further exploration under the option agreement with Arctic Star, Umgeni has the right to acquire North Arrow's interest in the option. If Umgeni does not acquire North Arrow's interest in the option agreement and the option agreement terminates, then Umgeni will have no further right to receive royalties for any ADD Claims in which North Arrow does not retain an interest. Arctic Star has consented to the granting of these 1.25% royalties on the ADD Claims and the possible future transfer to Umgeni of North Arrow's interest in the option agreement.
It is a further term of the agreement with Umgeni that North Arrow must conduct a minimum $800,000 exploration program at the Redemption Project before August 2016. With closing of the royalty sale, planning is now well underway for a spring 2016 drilling program at Redemption with the primary goal being the discovery of a kimberlite bedrock source to the South Coppermine kimberlite indicator mineral (KIM) train. Further details on the South Coppermine KIM train and ongoing exploration in the Redemption Project area can be found at www.northarrowminerals.com.
About North Arrow Minerals
North Arrow is a Canadian based exploration company focused on the identification and evaluation of diamond exploration opportunities in Canada. North Arrow's management, board of directors and advisors have significant successful experience in the Canadian diamond industry. North Arrow is currently evaluating each of the Redemption (NT), Pikoo (SK), Qilalugaq (NU), Lac de Gras (NT), Mel (NU), Luxx (NU) and Timiskaming (ON/QC) Diamond Projects. North Arrow's diamond exploration programs are conducted under the direction of Kenneth Armstrong, P.Geo. (ON), President and CEO of North Arrow and a Qualified Person under NI 43-101. Mr. Armstrong has reviewed and approves of the scientific and technical content in this news release.
North Arrow Minerals Inc.
/s/ "Kenneth A. Armstrong"
Kenneth Armstrong
President and CEO
For further information, please contact:
Ken Armstrong
Tel: 604-668-8355 or 604-668-8354
Website: www.northarrowminerals.com |
