North Arrow to raise $266,000 selling Loki diamond project royalty; completes Loki summer till sampling program, Lac de Gras, NWT
7 August 2019
North Arrow Minerals Inc.is pleased to provide an update on its Loki Diamond Project, including the sale of 0.5% royalty interests in the Project for $266,000. 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 Dominion Diamond Mines.
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 1.5% to 2.0% in exchange for payment of $266,000 to North Arrow. The royalties consist of net smelter return royalties on base and precious metals and a gross overriding royalty on diamonds. Umgeni is a private company of which Christopher Jennings, a director of North Arrow, is a beneficiary of the sole shareholder. Closing of the agreement with Umgeni is subject to the receipt of all required regulatory approvals including approval of the TSX Venture Exchange.
North Arrow also announces completion of a summer till sampling program at the Loki Project. A total of 190 samples were collected and are presently being shipped to a laboratory for processing and recovery of kimberlite indicator minerals. Sample results will be used to prioritize targets for ground geophysical surveys and exploration drilling. In addition to the funds raised by the royalty sale to Umgeni, this exploration is also supported by a grant from the Northwest Territories' Mining Incentive Program.