RAPAPORT... North Arrow Minerals Inc. completed its acquisition of interest in the Mel and Luxx diamond projects that are located in Nunavut, Canada. The junior firm expects to explore unexplained kimberlite indicator mineral trains that were identified from public datasets. The acquisition of Mel and Luxx was subject to separate purchase and sale agreements with Anglo Celtic Exploration Ltd., a private company controlled by D. Grenville Thomas.
The Luxx project consists of approximately 100,000 acres on tidewater of Chesterfield Inlet and includes at least one, and possibly three kimberlite trains defined from over 350 till samples in public assessment records, according to North Arrow. A brief, one-week field program is planned for later this month and will include ground truthing several target areas as well as till sampling.
The Mel project consists of approximately 183,000 acres on the Melville Peninsula, which is also the location of North Arrow's Qilalugaq diamond project. Mel hosts two unsourced kimberlite trains defined from over 500 till samples recorded in public assessment files. An airborne magnetic survey of the property is completed and final results are expected by the end of the month.
North Arrow acquired the interest in both properties in consideration of a 1 percent gross overriding royalty. North Arrow retains the right to buy back half of each royalty for $1 million at any time. North Arrow has also issued Anglo Celtic a total of 500,000 (250,000 for each agreement) transferable share purchase warrants. Each warrant entitles the warrant holder to acquire one common share of North Arrow at a price of 65 cents for a period of five years from the closing date of the purchase and sale.
Other projects on North Arrow's radar include the Pikoo in Saskatchewan, the Qilalugaq, the Redemption in the Northwest Territories, and the Timiskaming in Ontario. Additionally, a $2 million overburden drilling program, operated and funded by Dominion Diamond Corporation, is currently underway at North Arrow's property on Lac de Gras in the Northwest Territories.