North Arrow Minerals (NAR) has launched a geophysics program at its Loki Diamond Project in the Northwest Territories.
The property is located approximately 40 km west and 35 km southwest of the Diavik and Ekati diamond mines, respectively, and immediately west of North Arrow’s LDG Joint Venture Diamond Project Arctic Canadian Diamond Company.
The program will include gravity surveys of kimberlite EG05 and gravity and magnetic surveys in the north Loki target area.
This exploration is supported, in part, by a grant from the Northwest Territories Mining Incentive Program.
Five kimberlites have been discovered to date within the Loki Project area, all of which have been confirmed as diamond-bearing.
The current surveys are intended to help identify specific drill targets in the north Loki area, which is located near the up-ice termination of an unsourced kimberlite indicator mineral anomaly.
Survey EG05 is intended to better define the kimberlite's size and geophysical signature, which has not been constrained by drilling completed to date.
North Arrow also announces it has entered into a loan agreement with Anglo Celtic Exploration Ltd. to provide North Arrow with an unsecured loan of $400 thousand.
North Arrow can make early repayment of the loan at any time without prepayment penalty or bonus, with any outstanding balance on loan to be repaid in full by February 16, 2022.
The loan will carry an interest rate of 10 per cent per annum, with accrued interest to be paid at the time of repayment.
Anglo Celtic is a private company controlled by D. Grenville Thomas, a director of North Arrow.
The issuance of the bonus shares to Anglo Celtic and the entering into the agreement each constitute a "related party transaction," as defined under MI 61-101.
The transactions will be exempt from the formal valuation, and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid for, the agreement will exceed 25 per cent of North Arrow market capitalization.
North Arrow is a Canadian based exploration company focused on the identification and evaluation of diamond exploration opportunities in Canada.
North Arrow Minerals (NAR) is up 6.67 per cent and is trading at C$0.080 at 1:45 pm EST.