North Arrow starts geophysics program at Loki diamond project, enters loan agreement with Anglo Celtic Exploration
17 February 2021
North Arrow Minerals Inc. is pleased to announce that a ground geophysics program is underway at its 100% owned Loki Diamond Project in the Lac de Gras region of the Northwest Territories. The property is located approximately 40 km west, and 35 km southwest of the Diavik and Ekati diamond mines, respectively, and immediately west of North Arrow’s LDG Joint Venture Diamond Project with Arctic Canadian Diamond Company. The program will include gravity surveys of kimberlite EG05, and gravity and magnetic surveys in the north Loki target area. This exploration is supported, in part, by a grant from the Northwest Territories Mining Incentive Program.
Five kimberlites have been discovered to date within the Loki Project area, all of which have been confirmed as diamond bearing. The current surveys are intended to help identify specific drill targets in the north Loki area, which is located near the up-ice termination of an unsourced kimberlite indicator mineral anomaly. The survey of EG05 is intended to better define the size and geophysical signature of the kimberlite, which has not been constrained by drilling completed to date.
North Arrow also announces it has entered into a loan agreement (the “Agreement”) with Anglo Celtic Exploration Ltd. (“Anglo Celtic”) to provide North Arrow an unsecured loan of $400,000 (the “Loan”). North Arrow can make early repayment of the Loan at any time without prepayment penalty or bonus, with any outstanding balance on the Loan to be repaid in full by February 16, 2022. The Loan will carry an interest rate of 10% per annum, with accrued interest to be paid at the time of repayment. As further consideration for agreeing to advance the Loan, North Arrow shall issue to Anglo Celtic 1,000,000 common shares (the “Bonus Shares”) subject to receipt of final approval of the TSX Venture Exchange. Proceeds of the Loan will be used to advance the Company’s exploration projects in Canada and for general working capital.