Trading Symbol: TSXV: NAR
VANCOUVER, BC, Feb. 5, 2024
/CNW/ - North Arrow Minerals Inc. (TSXV: NAR) ("North
Arrow") announces it has granted Springbok Holdings Inc.
("Springbok") a 2% diamond royalty on its 100% owned LDG Project in
the Northwest Territories. In
exchange, Springbok has agreed to waive its right to receive a
future $1 million share payment from
North Arrow, which could have been triggered as early as this year
if exploration proceeds as planned at newly discovered spodumene
pegmatites on the property. The royalty will apply only to future
diamond production and will not apply to other commodities,
including lithium.
Ken Armstrong, President and CEO
of North Arrow commented, "Today's news allows North Arrow to
proceed with planned evaluation of the SD2 and SD4 spodumene
pegmatites, discovered in 2023 on the LDG property, without the
overhang of a potentially dilutive $1M share payment this summer. While we believe
the LDG Project remains prospective for diamonds, our focus over
the last 12 months, and looking forward into 2024, is to evaluate
the lithium potential of the LDG property and it was therefore
important for us to remove the share payment overhang while keeping
the property's lithium mineral rights royalty-free."
Background and Agreement Details
In April 2013, North Arrow
acquired Springbok's interest in a portion of the current LDG
property, as detailed in North Arrow news releases dated
October 25, 2012 and April 29, 2013. As part of the acquisition, North
Arrow retained an obligation, in certain circumstances, to issue to
Springbok that number of common shares of North Arrow having a
value of $1 million. As part of the
agreement announced today, Springbok has agreed to waive its right
to receive this $1 million share
payment and North Arrow has granted Springbok a 2% gross overriding
royalty on future diamond production from the LDG property. North
Arrow may purchase 1% of the royalty (reducing the royalty from 2%
to 1%) by making a single payment of $2
million at any time up to 24 months after the date on which
the first royalty payment is due. Dr. Chris
Jennings, a director of North Arrow, is a principal of
Springbok. The new agreement is subject to certain terms and
conditions, 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 lithium and other exploration
opportunities in Canada. North
Arrow's management, board of directors and advisors have
significant successful experience in the global exploration and
mining industry. North Arrow is evaluating spodumene pegmatites at
its 100% owned LDG, MacKay, and DeStaffany Lithium Projects (NWT),
is exploring for lithium in Nunavut at the Bathurst Inlet pegmatite field
and continues work to identify additional lithium exploration
opportunities in northern Canada.
North Arrow also owns interests in the Naujaat (NU), Pikoo (SK),
and Loki (NWT) Diamond Projects and maintains a 100% interest in
the Hope Bay Oro Gold Project, located approximately 3 km north of
Agnico Eagle's Doris Gold Mine,
Nunavut. North Arrow's exploration
programs are conducted under the direction of Kenneth Armstrong, P.Geo. (NWT/NU, ON),
President and CEO of North Arrow and a Qualified Person under NI
43-101. Mr. Armstrong has reviewed and approved the technical
contents of this press release.
North Arrow Minerals Inc.
/s/ "Kenneth A. Armstrong"
Kenneth Armstrong
President and CEO
Neither the TSX Venture Exchange nor its
Regulation Services Provider accepts
responsibility
for the adequacy or accuracy of this
release.
This news release contains "forward-looking statements"
including but not limited to statements with respect to North
Arrow's plans, the estimation of a mineral resource and the success
of exploration activities. Forward-looking statements, while based
on management's best estimates and assumptions, are subject to
risks and uncertainties that may cause actual results to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to the successful integration of acquisitions; risks
related to general economic and market conditions; closing of
financing; the timing and content of upcoming work programs; actual
results of proposed exploration activities; possible variations in
mineral resources or grade; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes,
title disputes, claims and limitations on insurance coverage and
other risks of the mining industry; changes in national and local
government regulation of mining operations, tax rules and
regulations. Although North Arrow has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. North Arrow undertakes no
obligation or responsibility to update forward-looking statements,
except as required by law.
SOURCE North Arrow Minerals Inc.