Business
North Arrow Minerals Sells Royalty Interests in Loki Diamond Project, NWT
VANCOUVER, British Columbia, March 06, 2023 (GLOBE NEWSWIRE) -- North Arrow Minerals Inc. (TSXV-NAR) (“North Arrow”) is pleased to announce it has sold 0.5% roy
About this update from North Arrow Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, March 06, 2023 (GLOBE NEWSWIRE) -- North Arrow Minerals Inc. (TSXV-NAR) (“North Arrow”) is pleased to announce it has sold 0.5% royalty interests in the Loki Diamond Project for proceeds of $374,000. The Loki Project is located in the Lac de Gras region of the Northwest Territories, approximately 30 km southwest, and 24 km west of the Ekati and Diavik diamond mines, respectively, and immediately adjacent to the west of North Arrow’s LDG Joint Venture Diamond Project with Arctic Canadian Diamond Company. Ken Armstrong, President and CEO of North Arrow, commented “While North Arrow is focusing on our newly acquired DeStaffany and Bathurst Inlet lithium projects, we are pleased that proceeds from the royalty sale announced today will provide for the non-dilutive financing of continued exploration at the Loki Diamond Project, including ground geophysical surveys of priority kimberlite targets this coming spring. We believe the Lac de Gras region remains highly prospective for the discovery of new diamond deposits, as highlighted by last year’s kimberlite discoveries by Arctic Canadian Diamond Company on the Ekati mine property, as well as North Arrow’s discoveries of new kimberlites at Loki (April 5, 2018) and the LDG joint venture (July 8, 2019). Upcoming ground survey targets will be selected on the basis of an ongoing review of Loki exploration datasets, including application of deep machine learning (DML) technology by Mineral Services Canada Inc., similar to DML methods which contributed to discovery of the 1.7 hectare Bear kimberlite at Ekati in 2022.” Royalty sale terms North Arrow has reached an agreement with Umgeni Holdings International Limited (“Umgeni”) under which Umgeni has agreed to increase its royalty interests in the Loki Project from 2.0% to 2.5% in exchange for payment of $374,000 to North Arrow. The royalties consist of net smelter return royalties on base and precious metals and a gross overriding royalty on diamonds. North Arrow shall have the option to purchase 0.5% of the royalties by paying Umgeni $5,000,000 any time up to 24 months after the start of commercial production from a mine on the property. In addition, North Arrow will issue to Umgeni 1,000,000 shares of North Arrow upon announcement of a new kimberlite discovery on the property and will issue a further 5,000,000 s...