North Arrow Minerals Inc. (TSXV-NAR) announced on Monday, August 23, 2021, that it has entered an agreement to sell its Oro Gold property in Nunavut. The property was sold to Highland Resources Canada Ltd. for a combination of cash and shares in Highland, with North Arrow retaining a 2% net smelter return royalty on any future production from the property.
The Oro Gold property, situated along the highly prospective Committee Bay Greenstone Belt in Nunavut, has been an important asset for North Arrow since its acquisition in 2004. The property covers an area of approximately 23,971 hectares and has shown significant potential for gold mineralization through various exploration programs carried out by North Arrow over the years.
The decision to sell the Oro Gold property comes as North Arrow continues to focus its efforts on advancing its flagship projects in Canada, including the Naujaat Diamond Project in Nunavut and the Lac de Gras Diamond Project in the Northwest Territories. By divesting non-core assets such as Oro Gold, North Arrow aims to streamline its portfolio and allocate resources more efficiently towards projects with the greatest potential for value creation.
Highland Resources Canada Ltd., the acquiring company, is a privately held mineral exploration company with a focus on gold exploration in North America. The acquisition of the Oro Gold property marks an important milestone for Highland as it expands its portfolio of gold assets and strengthens its presence in the region. With the acquisition, Highland gains access to a promising exploration property with known gold mineralization and the potential for further discovery.
The transaction between North Arrow and Highland Resources Canada Ltd. is subject to customary closing conditions, including regulatory approval. Once the transaction is complete, North Arrow will receive a cash payment and shares in Highland, providing the company with additional financial resources to support its ongoing exploration and development activities.
In conclusion, the sale of the Oro Gold property in Nunavut represents a strategic decision by North Arrow Minerals Inc. to focus on its core projects and enhance shareholder value. The transaction with Highland Resources Canada Ltd. not only provides North Arrow with immediate financial benefits but also positions the Oro Gold property for further exploration and development under new ownership. As North Arrow continues to advance its key projects, including the Naujaat and Lac de Gras Diamond Projects, investors can look forward to further updates on the company’s progress and future growth opportunities in the mineral exploration sector.