North Arrow Raises $800,000 from Redemption Royalty Agreement
January 31, 16
(IDEX Online News) – North Arrow Minerals has announced that it has reached an $800,000 financing agreement with Umgeni Holdings International Limited, to acquire a royalty interest in the exploration company’s Redemption Diamond Project.
According to the terms of the agreement, Umgeni, a private company whose sole shareholder is North Arrow director Christopher Jennings, will be entitled to certain benefits, including 1.5-percent gross overriding royalty on diamonds. An additional term of the agreement is that North Arrow must undertake at least an $800,000 exploration program at Redemption Project before August 2016.
“This agreement with Umgeni represents a non-dilutive hard dollar financing that strengthens North Arrow’s treasury and allows North Arrow to immediately moved ahead with exploration drilling program at both the Redemption and Pikoo Diamond Projects. We expect drilling at the Pikoo Project to commence in mid-February and planning is underway to conduct a drilling program at Redemption starting in mid-March,” said North Arrow president and CEO, Ken Armstrong.