RAPAPORT... North Arrow Minerals Inc. intends to complete a non-brokered private placement of up to 7 million shares at a price of 50 cents per share for proceeds of $3.5 million. North Arrow also intends to complete a non-brokered private placement of up to 3 million flow-through shares at a price of 60 cents per share for proceeds of $1.8 million.
Proceeds from the private placement will be used to finance exploration programs at the company's diamond properties in Canada and for working capital purposes. The company expects that insiders will participate in the private placement on the same terms and conditions as arm's length subscribers.
Proceeds from the flow-through shares will be used by North Arrow to incur Canadian exploration expenses prior to December 31, 2014. North Arrow will renounce the qualifying expenditures to subscribers of the flow-through shares for the fiscal year that will end on December 31, 2013.
This past week, North Arrow Minerals 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.