Aug 20 2013
North Arrow Minerals Inc. ("North Arrow" or the "Company") is pleased to announce that it has closed the acquisition of a 100% interest in 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 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 containing 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. An airborne magnetic survey of the property is now complete and several priority targets have been identified for initial follow up work. A brief, one week field program is planned for later this month and will include ground truthing several target areas as well as till sampling.
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. An airborne magnetic survey of the property is now complete. Final results are expected by the end of the month and will be used to prioritize target areas for follow up till sampling and mapping in 2014.
Under the terms of each Purchase and Sale agreement, North Arrow has acquired a 100% interest in each property in consideration of a 1% gross overriding royalty. North Arrow retains the right to buy back half of each royalty (0.5%) for $1 million at any time. North Arrow has also issued to Anglo Celtic a total of 500,000 (250,000 for each agreement) transferrable share purchase warrants. Each warrant entitles the warrant holder 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.
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 properties, North Arrow is also conducting exploration at each of the Pikoo (Saskatchewan), Qilalugaq (Nunavut), Redemption (Northwest Territories) and Timiskaming (Ontario) diamond projects. Furthermore, a $2 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/