North Arrow closes sale of Loki diamond project royalty for $266,000
3 September 2019
North Arrow Minerals Inc. (TSXV-NAR) is pleased to announce it has closed the sale of royalty interests in the Loki Diamond Project announced on August 7, 2019. 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 closed an agreement with Umgeni Holdings International Limited ("Umgeni") under which Umgeni has increased 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.
North Arrow is also pleased to report that processing is underway on till samples collected as part of a July field program at the Project (please see North Arrow news release dated August 7, 2019 for details). Detailed ground magnetic surveys of two priority targets are also expected to be completed within the next several weeks. Results from the 2019 till samples will be used to prioritize targets for additional 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.