North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce it has entered a purchase and sale agreement with Crystal Exploration Inc. (TSX VENTURE: CEI) under which Crystal will acquire North Arrow's 100% interest in the Contwoyto Project, Nunavut, including the Butterfly gold prospect.
Under the terms of the purchase and sale agreement, Crystal will acquire North Arrow's 100% interest in the project in exchange for consideration of $100,000 in cash and 1,000,000 shares of Crystal, of which $50,000 cash will be paid and 500,000 shares issued at closing of the transaction. The balance of the cash and share payments are due on or before December 15, 2018. As additional consideration, North Arrow will retain a 1.0% gross overriding royalty on diamonds and a 1.0% net smelter returns royalty on precious and base metals. Half (0.5%) of the royalties can be purchased by Crystal at any time for a payment of $1.0 million. North Arrow will also receive conditional share payments of 500,000 Crystal shares in the event Crystal reports an inferred gold resource exceeding 250,000 ounces associated with the Butterfly gold prospect and a further 500,000 Crystal shares in the event Crystal reports a separate inferred resource of at least 250,000 ounces gold outside of the Butterfly area.