North Arrow Minerals Inc. takes great pleasure in offering an update on its Loki Diamond Project, which includes the sale of 0.5% royalty interests in the Project for $266,000.
The Loki Project is situated in the Lac de Gras area of the Northwest Territories, around 30 km southwest of the Ekati diamond mines, and 24 km west of the Diavik diamond mines, and directly next to the west of North Arrow’s LDG Joint Venture Diamond Project with Dominion Diamond Mines.
North Arrow has arrived at a settlement with Umgeni Holdings International Limited as per which Umgeni has accepted to raise 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 include net smelter return royalties on precious and base metals as well as 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 only stakeholder.
Closure of agreement with Umgeni is conditional on the receipt of all mandatory regulatory approvals, such as the approval of the TSX Venture Exchange.
In addition, North Arrow has announced the conclusion of summer till sampling program at the Loki Project. Totally 190 samples were gathered and are currently being transported to a lab for processing and recovery of kimberlite indicator minerals.
Sample results will be employed to prioritize targets for ground geophysical surveys and exploration drilling. Apart from the funds collected by the royalty sale to Umgeni, this exploration is also supported by a grant from the Northwest Territories’ Mining Incentive Program.
Proceeds from the royalty sale announced today, combined with the NWT Mining Incentive Program grant, provide for the non-dilutive financing of continued exploration at the Loki Diamond Project.
Ken Armstrong, President and CEO, North Arrow
Armstrong continued, “We believe the Lac de Gras region remains highly prospective for the discovery of new diamond deposits, as highlighted by North Arrow’s recent discoveries of new kimberlites at Loki (April 5, 2018) and the LDG joint venture (July 8, 2019). The current till sampling program has filled some crucial gaps in the Loki Project’s sampling database and the results will be important in prioritizing targets for drilling in the winter of 2020.”
The Loki Diamond Project exploration program is supervised and headed by Michael MacMorran, P.Geo. (NWT/NU), Project Geologist of North Arrow. North Arrow’s diamond exploration programs are carried out under the guidance of Kenneth Armstrong, P.Geo. (ON), President and CEO of North Arrow and a Qualified Person under NI 43-101. The contents of this press release have been reviewed by Mr MacMorran and Mr Armstrong.