Business
North Arrow to Raise $800,000 Selling Redemption Royalty
VANCOUVER, BC--(Marketwired - January 25, 2016) - North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce it has reached an agreement with Umgeni Ho
About this update from North Arrow Minerals Inc.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - January 25, 2016) - North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce it has reached an agreement with Umgeni Holdings International Limited (\"Umgeni\") under which Umgeni has agreed to acquire 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. Ken Armstrong, President and CEO of North Arrow, commented, \"This agreement with Umgeni represents a non-dilutive hard dollar financing that strengthens North Arrow's treasury and allows North Arrow to immediately move ahead with exploration drilling programs at both the Redemption and Pikoo Diamond Projects. We expect drilling at the Pikoo Project to commence in mid-February and planning is underway to conduct a drilling program at Redemption starting in mid-March.\" Under the terms of the agreement with Umgeni, Umgeni has agreed to pay North Arrow $800,000 to acquire 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. 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...