North Arrow Minerals Inc. (TSX-V: NAR) has arranged to complete a non-brokered private placement of up to 20,000,000 units at a price of $0.25 per unit for gross proceeds of $5,000,000.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share at a price of $0.40 for a period of three years following the closing of the private placement.
Electrum Strategic Opportunities Fund L.P. and Ross Beaty have each agreed to make an investment of $2,000,000, together $4,000,000, towards the private placement. Upon closing of the private placement, each of the Purchasers will own 19.01% of North Arrow’s outstanding shares on a partially diluted basis.
“North Arrow is very pleased that today’s announced private placement will significantly build upon the support of our existing strong shareholder base. These funds will allow North Arrow to complete a summer 2017 drilling and sampling program of the Q1-4 kimberlite at our 100% owned Naujaat Diamond Project, Nunavut. The program is designed to improve our understanding of the size and grade potential of Q1-4 as well as the size distribution and value characteristics of its unique diamond population,” said Ken Armstrong, North Arrow’s President & CEO.
Net proceeds will be used for general working capital and to fund the continued evaluation of North Arrow’s Canadian diamond exploration properties.
North Arrow Minerals is a Canadian based exploration company focused on the identification and evaluation of diamond exploration opportunities in Canada. North Arrow is currently evaluating a number of projects including the Naujaat (formerly Qilalugaq) (NU), Mel (NU), Pikoo (SK), LDG (NT), and Loki (NT) Diamond Projects. North Arrow also maintains a 100% interest in the Hope Bay Oro Gold Project (NU), located approximately 3km north of TMAC Resources’ new Doris Gold Mine.
photo credit: North Arrow Minerals