North Arrow Minerals Inc. (NAR: TSXV) ("North Arrow" or the "Company") is pleased to announce the closing on June 1, 2009 of a non-brokered private placement of 5,000,000 flow-through units ("FT Units") of the Company at a price of $0.10 per FT Unit for gross proceeds of $500,000. Each FT Unit consists of one flow-through common share (each, a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant is transferable and can be exercised to acquire one common share at a price of $0.20 per share until June 1, 2010.
The proceeds from the private placement will be used to advance North Arrow's Phoenix and Torp lithium projects in the Northwest Territories and Nunavut, respectively. Expenditures from the Shares will constitute Canadian exploration expense ("CEE") (as defined in the Income Tax Act) and will be renounced to the subscribers of this private placement for the 2009 tax year.
The Company paid certain finders a fee by the issuance of a total of 240,000 common shares with a value of $0.125 per share, which represents 6% of the gross proceeds from the sale of FT Units. The Company also issued 300,000 warrants to the finders. Each finder's warrant is exercisable to acquire one common share of the Company at $0.15 per share until June 1, 2010.
All of the securities issued as part of this private placement and all common shares issuable on the exercise of the Warrants and finder's warrants are subject to a four month hold period expiring October 2, 2009.
North Arrow Minerals Inc.
Per: "D. Grenville Thomas"
D. Grenville Thomas
President and CEO
For further information, please contact:
D. Grenville Thomas
President and CEO
Tel: 604 668-8355
Email: [email protected]
Website: www.northarrowminerals.com
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy of this release.
