North Arrow Minerals Inc. (NAR: TSXV) is pleased to announce an amendment to the terms of the previously announced agreement with Dr. Chris Jennings to jointly explore its Lac de Gras diamond property (please see North Arrow news release #10-03 dated February 1, 2010). The Lac de Gras property is located within the prolific Lac de Gras diamondiferous kimberlite field in Canada's Northwest Territories. The property directly adjoins the mineral leases that host the Diavik diamond mine, located 10 km to the north. The Ekati diamond mine is located within 40 km to the northwest. The kimberlites of the Diavik and Ekati diamond mines are among the richest diamond deposits in the world.
Under the terms of the amended agreement, Dr. Jennings can earn a 50% interest in the Lac de Gras property by i) paying the full legal survey costs required to convert existing mineral claims to mining leases; ii) paying the first year's rental fees for the mining leases; and iii) conducting a review of existing geophysical magnetic data using a proprietary processing technique and recommending drilling targets for follow up exploration work. North Arrow will be responsible for funding the first $1,000,800 in exploration expenditures on the property, subsequent to which exploration of the Lac de Gras property will be carried out based upon a 50:50 joint venture. Follow up exploration will include geophysics and diamond drilling with initial field work to commence in the spring 2010.
Dr. Jennings has also agreed to subscribe to a private placement of 2,780,000 units of North Arrow at a price of $0.18 per unit for total gross proceeds of $500,400. Each unit will consist of one common share of North Arrow and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of North Arrow at a price of $0.30 for a period of 12 months from the closing date of the private placement. Completion of this private placement will be subject to regulatory acceptance.
North Arrow maintains a diverse portfolio of lithium, diamond, gold and base metal exploration properties in North America. North Arrow's exploration programs are conducted under the supervision of Gordon Clarke, P.Geol (NT&NU), Vice President, Exploration for North Arrow and a qualified person under NI 43-101.
North Arrow Minerals Inc.
/s/ "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]
Gordon Clarke
Vice President, Exploration
Tel: 867-873-8483
Website: www.northarrowminerals.com
