North Arrow Minerals Inc. announced that it has granted Springbok Holdings Inc. a 2% diamond royalty on its 100%-owned LDG Project in the Northwest Territories. In exchange, Springbok has agreed to waive its right to receive a future $1 million share payment from North Arrow, which could have been triggered as early as this year if exploration proceeds as planned at the newly discovered spodumene pegmatites on the property. The royalty will apply only to future diamond production and will not apply to other commodities, including lithium.

“Today’s news allows North Arrow to proceed with planned evaluation of the SD2 and SD4 spodumene pegmatites, discovered in 2023 on the LDG property, without the overhang of a potentially dilutive $1M share payment this summer,” said Ken Armstrong, President and CEO of North Arrow. “While we believe the LDG Project remains prospective for diamonds, our focus over the last 12 months, and looking forward into 2024, is to evaluate the lithium potential of the LDG property and it was therefore important for us to remove the share payment overhang while keeping the property’s lithium mineral rights royalty-free.”

In April 2013, North Arrow acquired Springbok’s interest in a portion of the current LDG property. As part of the acquisition, North Arrow retained an obligation, in certain circumstances, to issue to Springbok that number of common shares of North Arrow having a value of $1 million. Now Springbok has agreed to waive its right to receive the $1 million share payment and North Arrow has granted Springbok a 2% gross overriding royalty on future diamond production from the LDG property. North Arrow may purchase 1% of the royalty (reducing the royalty from 2% to 1%) by making a single payment of $2 million at any time up to 24 months after the date on which the first royalty payment is due. 

North Arrow is a Canadian-based exploration company focused on the identification and evaluation of lithium and other exploration opportunities in Canada. North Arrow is evaluating spodumene pegmatites at its 100% owned LDG, MacKay, and DeStaffany Lithium Projects (NWT), exploring for lithium in Nunavut at the Bathurst Inlet pegmatite field, and continuing work to identify additional lithium exploration opportunities in northern Canada. North Arrow also owns interests in the Naujaat (NU), Pikoo (SK), and Loki
(NWT) Diamond Projects and maintains a 100% interest in the Hope Bay Oro Gold project, located approximately 3 km north of Agnico Eagle’s Doris Gold Mine (NU).