North Arrow will have the option to earn an 80% interest in the Pikoo diamond project by completing an option work program consisting of a minimum 2,000 m diamond drilling program including a minimum of two drill holes at each of the North and South target areas. The work program must, among other requirements, be initiated by January 2015 and completed by January 2016.
Timiskaming diamond project (Ontario/Quebec)
The Timiskaming diamond project consists of 3,865 hectares of non-contiguous mineral claims in the Cobalt-New Liskeard-Elk Lake-Notre Dame du Nord (Ville Marie) region of northeastern Ontario and northwestern Quebec. Between 1995 and 2012, Stornoway and its predecessor companies conducted comprehensive diamond exploration programs within the project area resulting in the discovery of nine kimberlites. Six of these kimberlites (95-1, 96-1, SC-118, KL-01, KL-22, and Baby) are subject to the option agreement with BCCo. Surficial sediment sampling and geophysical data from the Timiskaming diamond project suggest additional undiscovered kimberlites may be located within the project area. North Arrow considers the information in the Timiskaming diamond project database to be relevant and reliable. However, there is no certainty that diamondiferous kimberlite source bodies will be discovered within the project area.
North Arrow will have the option to earn an 80% interest in the Timiskaming diamond project by completing an option work program that includes testing three separate geophysical targets, each with at least one diamond drill hole. The option work program must be commenced by January 2015 and completed by January 2016.
North Arrow / BCCo assignment agreement
Under the terms of the assignment agreement between North Arrow and BCCo, BCCo will assign and transfer its interest in the Stornoway option agreements in exchange for a cash payment from North Arrow of $20,000. North Arrow will also issue to BCCo 500,000 transferrable share purchase warrants. Each warrant will entitle 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 to earn an interest in at least one of the Qilalugaq, Pikoo and Timiskaming projects.
The assignment agreement requires, as a condition of closing, that North Arrow complete a minimum $2,000,000 financing.
Private Placement Financing
North Arrow also reports that it intends to complete a non-brokered private placement of up to 20,000,000 shares at a price of 15 cents per 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. It is anticipated that insiders of the Company will participate in the private placement on the same terms and conditions as arm's length subscribers. The Company may pay commissions and finders' fees in connection with the financing.
The assignment agreement and private placement announced in this news release is subject to certain conditions, including receipt by North Arrow of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued as part of the private placement will be subject to a hold period of four months from the date of issuance of the securities.
Change to Board of Directors
North Arrow also reports that Karl Fix has resigned as a director of the Company to pursue other business interests. North Arrow thanks Mr. Fix for his service to the Company.
Kenneth Armstrong, P.Geo. (ON), director of North Arrow and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.
North Arrow Minerals Inc.
Kenneth Armstrong, Director
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
North Arrow Minerals Inc.
North Arrow Minerals Inc.
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