VANCOUVER, BC--(Marketwired - January 17, 2017) - North Arrow Minerals Inc. (TSX VENTURE: NAR) is pleased to announce it has entered a property purchase agreement with Stornoway Diamond Corporation (TSX: SWY) under which North Arrow will acquire Stornoway's remaining interests in the Qilalugaq and Pikoo Diamond Projects. Upon closing the transaction, North Arrow will hold 100% interests in both projects.
Ken Armstrong, President and CEO of North Arrow, stated "The agreement announced today allows North Arrow to consolidate our ownership of the Qilalugaq and Pikoo Projects without up-front cash payments and provides the company with greater flexibility to manage continued evaluation of two of the most compelling exploration stage diamond projects in Canada. The Qilalugaq Project, Nunavut, hosts the large Q1-4 kimberlite which contains a population of fancy orangey yellow diamonds that are unique in Canada. A diamond drill has been mobilized to the community of Naujaat, just 9 km from Q1-4, where a drilling and sampling program is planned for this spring and summer. Further, the Pikoo Project remains Canada's most recently discovered new diamond field with kimberlite intersected in 70% of the drill holes completed to date. We continue to define priority drilling targets at Pikoo both near existing discoveries and at the heads of unsourced kimberlite indicator mineral trains."
Under terms of the property purchase agreement, North Arrow will acquire Stornoway's approximate 18% interest in the Qilalugaq Project and approximate 15% interest in the Pikoo Project in exchange for 2,000,000 common shares of North Arrow. As additional consideration, Stornoway will retain 0.5% and 1.0% gross overriding royalties on diamonds and 0.5% and 1.0% net smelter returns royalties on base and precious metals mined from the Qilalugaq and Pikoo Projects, respectively. North Arrow will also make Cdn $2.5M and Cdn $1.25M cash payments to Stornoway at the same time that first royalty payments relating to the Qilalugaq and Pikoo Projects, respectively, are payable. Closing of the agreement with Stornoway is subject to a number of terms and conditions, including the acceptance 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 Qilalugaq and Pikoo Projects, North Arrow is also currently evaluating the Loki (NWT), Lac de Gras (NWT), Mel (NU), Luxx (NU) and Timiskaming (ON) Diamond Projects. North Arrow's diamond exploration programs are conducted under the direction of Kenneth Armstrong, P.Geo., President and CEO of North Arrow and a Qualified Person under NI 43-101. Mr. Armstrong has reviewed the contents of this press release.
