Business
North Arrow Closes Sale of Redemption Royalty Raising $800,000
VANCOUVER, BC--(Marketwired - February 10, 2016) - North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce that the transaction under which Umgeni H
About this update from North Arrow Minerals Inc.
[{"type":"text","content":" VANCOUVER, BC--(Marketwired - February 10, 2016) - North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce that the transaction under which Umgeni Holdings International Limited (\"Umgeni\") agreed to acquire a royalty interest in North Arrow's Redemption Diamond Project for $800,000 has now closed. 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 received TSXV approval to the transaction and has received the $800,000 from Umgeni.Under the terms of the agreement with Umgeni, Umgeni paid North Arrow $800,000 and acquired the following royalty interests in North Arrow's 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. (TSX VENTURE: 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. About North ...