North Arrow Minerals Inc. ("North Arrow" or "the Company") (TSXV-NAR) is pleased to announce that the Company and Springbok Holdings Inc., ("Springbok") have signed an Option Agreement with Harry Winston Diamond Mines Ltd. and its wholly owned subsidiary, 6355137 Canada Inc. ("Harry Winston") in regards to their Lac de Gras property in the Northwest Territories. Harry Winston is a 40% owner of the adjoining Diavik diamond mine, which commenced production in 2003.
North Arrow's Lac de Gras property covers over 81,000 acres and is contiguous with property held by Harry Winston that covers nearly 226,000 acres. Under the terms of the agreement, the two properties collectively will form a "joint venture property". Harry Winston is to carry out exploration on North Arrow's property concurrently with their own, making expenditures of at least $5,000,000 over a five year period in order for the option to vest. Upon vesting, a joint venture will be formed in which Harry Winston will hold a 55% interest and North Arrow and Springbok will equally share a 45% interest in the entire 307,000 acre joint venture property.
The joint venture property forms a very large, contiguous block located within the prolific Lac de Gras diamondiferous kimberlite field in Canada's Northwest Territories, home to some of the richest diamond deposits in the world. The joint venture property directly adjoins the mineral leases that host the Diavik diamond mine, located only 10 km to the north and the Ekati diamond mine is located within 40 km to the northwest. The trend line defined by Diavik's mine project kimberlites runs directly through the centre of the joint venture property, while trend line defined by Ekati's mine project kimberlites crosses the western portion of the joint venture property..
Previous exploration has been carried out on portions of the joint venture property, but traditional surface till sampling for kimberlite mineral indicator trains has been hampered by thick glacial till cover. Work has already begun on mapping local ice directions and till characteristics in preparation for a systematic basal till sampling program, to be initiated in early 2012. The program will use a track mounted reverse circulation drill to sample a complete till column and reach basal till not accessed by previous sampling.
North Arrow CEO Gren Thomas commented, "We are pleased to enter into this Agreement with one of Canada's leading diamond producers and I look forward to once again working with Robert Gannicott and Dr. Chris Jennings, both of whom were integral to the Diavik mine discovery. North Arrow will benefit from having a major partner to advance the exploration on our property, while at the same time we will earn a significant interest in a larger property that has excellent prospects for the discovery of diamonds."
The Option Agreement is subject to customary conditions, including regulatory and Exchange approval.
The technical content of this news release has been reviewed and approved by Gordon Clarke, P.Geol (NT&NU), Vice President, Exploration for North Arrow and a qualified person under NI 43-101.
About Springbok Holdings Inc.
Prior to the Option Agreement, North Arrow and Dr. Chris Jennings were equal partners in the 100% owned Lac de Gras project. Dr. Jennings has assigned his interests in the project to Springbok Holdings Inc., ("Springbok") therefore North Arrow and Springbok are jointly the Optionors of the project.
North Arrow Corporate Update
North Arrow is pleased to announce that on August 31st it received regulatory approval and has now closed a $1,000,000 private placement of a convertible promissory note with Anglo-Celtic Exploration Ltd. ("Anglo-Celtic" or the "Lender"), previously announced on August 5th and August 23rd, 2011. Anglo-Celtic is a private company controlled by D. Grenville Thomas, who is a director of North Arrow.
The private placement consists of a convertible note, structured as an unsecured, interest-bearing loan of $1,000,000. The term of the loan is for two years, to August 31, 2013. Anglo-Celtic did not receive any warrants upon issuance of the convertible note however, if North Arrow fails to repay the loan in full by August 31, 2012, or if North Arrow and Anglo-Celtic amend or re-negotiate the terms of the loan in future, Anglo-Celtic will have the right to convert the principal amount of the note into both common shares and an equal number of warrants, such warrants being exercisable until the loan's August 31, 2013 due date. Any shares issued pursuant to the terms of this private placement will be subject to a hold period, which expires on January 1, 2012.
About North Arrow Minerals
North Arrow Minerals is a well-established junior exploration company with a diversified portfolio of gold, base metal and diamond projects. Most of the North Arrow's Canadian properties are funded through option or joint venture agreements, allowing the Company to focus its resources on the acquisition and development of exploration properties in South America.
North Arrow Minerals Inc.
/s/ "Brian McEwen"
Brian McEwen
President and COO
For further information, please contact:
Julie Hajduk
Corporate Communications
Tel: 604-681-5543/ Cell : 778-240-7077
Email: [email protected]
Website: www.northarrowminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements The information in this press release includes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NAR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NAR's forward-looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NAR assumes no obligation to update the forward-looking statements if management's beliefs, opinions, projections, or other factors should they change.
