-- the Company has closed a $3,000,000 non-brokered private placement;-- the Company has closed an assignment agreement under which North Arrow has acquired options to earn an 80% interest in the Qilalugaq, Pikoo and Timiskaming diamond projects located in Canada;-- the Company has closed its acquisition of Springbok Holdings' interests in the Lac de Gras Diamond project; and-- Mr. Kenneth Armstrong has been appointed President and Chief Executive Officer of the Company. D. Grenville Thomas, formerly President and CEO of North Arrow, will remain as Chairman and a director of the Company.
Private Placement Financing
North Arrow has closed a non-brokered private placement of 20,000,000 common shares at a price of 15 cents per common share for total gross proceeds of $3,000,000. Proceeds from the private placement will be used to finance exploration programs at the Timiskaming, Pikoo and Qilalugaq projects and for working capital purposes. Insiders of the Company have participated in the private placement on the same terms and conditions as arm's length subscribers. As part of the private placement 5,448,333 shares were purchased by Zebra Holdings & Investments S.A.R.L., a company controlled by a trust settled by the late Adolf H. Lundin, representing approximately 19.86% of the issued and outstanding common shares of North Arrow. The Company paid total cash finders fees of $630 in connection with the financing. All shares issued as part of the private placement are subject to a hold period expiring August 29, 2013.
Assignment Agreement and diamond property options
Concurrent with closing the private placement, North Arrow has also closed the previously announced assignment agreement with 0954506 B.C. Ltd. ("BCCo") under which BCCo has agreed to assign and transfer to North Arrow all of BCCo's interest and obligations in three option agreements with Stornoway Diamond Corporation (please see North Arrow news release #13-04 dated March 14, 2013). The option agreements provide North Arrow the option to earn an 80% interest in each of the Qilalugaq, Pikoo and Timiskaming diamond projects located in Canada. Stornoway is the holder of a 100% interest in all three projects. BCCo is a private company controlled by Eira M. Thomas. Ms. Thomas is the daughter of D. Grenville Thomas, Chairman of North Arrow.
On closing the assignment agreement BCCo has assigned and transferred its interest in the Stornoway option agreements to North Arrow, and North Arrow has made a cash payment of $20,000 and issued 500,000 transferrable share purchase warrants to BCCo. Each warrant entitles BCCo to acquire one common share of North Arrow at a price of 25 cents for a period of five years from the closing date of the assignment. The warrants will only become exercisable in the event North Arrow exercises an option and earns an interest in at least one of the Qilalugaq, Pikoo and Timiskaming projects. Any shares issued as a result of the exercise of the warrants are subject to a hold period expiring on August 29, 2013. North Arrow has further delivered to Stornoway an agreement to be bound by the terms and conditions of each of the three option agreements.