Jul 15 2013
North Arrow Minerals Inc. ("North Arrow" or the "Company") is pleased to announce that it has acquired a 100% interest in each of the Mel and Luxx diamond projects, Nunavut. Both projects were acquired to cover unexplained kimberlite indicator mineral trains identified from public datasets. Acquisition of the Mel and Luxx projects is subject to separate purchase and sale agreements with Anglo Celtic Exploration Ltd., a private company controlled by D. Grenville Thomas, a director of the Company.
The Mel project consists of approximately 183,000 acres on the Melville Peninsula, approximately 140 km south of the community of Hall Beach and 210 km northeast of the community of Repulse Bay which is also the location of North Arrow's Qilalugaq Diamond Project. The property is located within 10 km of tidewater and hosts two unsourced KIM trains defined from over 500 till samples recorded in public assessment files. The mineral trains are composed of pyrope and eclogitic garnets, as well as ilmenite. Initial exploration of the property will consist of an airborne magnetic survey during July with follow up till sampling to confirm and better define the composition of the kimberlite indicator minerals.
The Luxx project consists of approximately 100,000 acres on tidewater of Chesterfield Inlet, approximately 60 km from the community of Chesterfield Inlet and 100 km north of the community of Rankin Inlet. The project includes at least one, and possibly three KIM trains defined from over 350 till samples in public assessment records. The trains are located within 20 km of the Churchill kimberlite cluster, and include samples contain in excess of 30 garnets and 200 ilmenites at the head of the train that is well cut-off by a series of barren till samples. Initial exploration of the property will consist of an airborne magnetic survey during July with follow up till sampling to confirm and better define the composition of the kimberlite indicator minerals.
Under the terms of each Purchase and Sale agreement, North Arrow shall acquire a 100% interest in each property in consideration of a 1% gross overriding royalty. North Arrow will retain the right to buy back half of each royalty (0.5%) for $1 million at any time. North Arrow will also issue to Anglo Celtic a total of 500,000 (250,000 for each agreement) transferrable share purchase warrants. Each warrant will entitle Anglo Celtic to acquire one common share of North Arrow at a price of 65 cents for a period of five years from the closing date of the purchase and sale. Any shares issued as a result of the exercise of the warrants will be subject to a hold period of four months from the date of closing the purchase and sale.
The purchase and sale of each property is subject to the receipt by North Arrow of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
About North Arrow Minerals
North Arrow is a Canadian based exploration company focused on the identification and evaluation of diamond exploration opportunities in Canada. North Arrow's management, board of directors and advisors have significant successful experience in the Canadian diamond industry. In addition to the Mel and Luxx property acquisitions, North Arrow is also conducting exploration at each of the Pikoo (Saskatchewan), Qilalugaq (Nunavut), Redemption (Northwest Territories) and Timiskaming (Ontario) diamond projects including a 2,000m drilling program currently underway at the Pikoo project. Furthermore, a $1.3 million overburden drilling program, operated and funded by Dominion Diamond Corporation, is currently underway at the Company's Lac de Gras diamond property, NWT.
Qualified Person
Kenneth Armstrong, P.Geo. (ON), President and CEO of North Arrow and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.
Source: http://www.northarrowminerals.com/