North Arrow Minerals Inc. (TSXV: NAR) has closed its previously announced agreement granting Springbok Holdings Inc. a 2% diamond royalty on North Arrow’s 100% owned LDG Project in the Northwest Territories.
In exchange, Springbok has waived its right to receive a future C$1M share payment from North Arrow, which could have been triggered as early as this year if exploration proceeds as planned at newly discovered spodumene pegmatites on the property.
In addition, the royalty will apply to future diamond production only. North Arrow may purchase 1% of the royalty (reducing the royalty from 2% to 1%) by making a single payment of C$2M at any time up to 24 months after the date on which the first royalty payment is due. Dr. Chris Jennings, a director of North Arrow, is a principal of Springbok.
Any transaction with an insider constitutes a “related party transaction”, as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the royalty is less than 25% of North Arrow’s market capitalization.
North Arrow is a Canadian based exploration company focused on the identification and evaluation of lithium and other exploration opportunities in Canada.
To find out more, please visit www.northarrowminerals.com
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