Initial drilling completed by North Arrow in the fall of 2009 tested only nine of over 37 pegmatite bodies that have been mapped within the project area. Twelve drill holes were completed and all intersected lithium bearing pegmatites, with previously reported assays including 1.24% Li2O over 13 m (North Arrow news release #09-26). The current program is designed to evaluate remaining untested pegmatite bodies. The project’s numerous untested targets, advantageous location and proximity to infrastructure highlight the project’s potential for discovery of an American domestic lithium source.
North Arrow is also pleased to announce the closing on April 20, 2010 of a non-brokered unit private placement announced on March 19, 2010. On April 20, 2010, North Arrow issued 5,481,000 units of the Company at a price of $0.18 per Unit, for gross proceeds of $986,580. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 per share until April 20, 2011. The warrants are transferrable. The common shares issued as part of this private placement and any common shares issued upon the exercise of the warrants are subject to a hold period which expires August 21, 2010. As part of this private placement, the Company paid finder’s fees of $25,519. Two directors of the Company each purchased 560,000 units in this private placement.
The net proceeds of the private placement will be used to advance the Beaverdam project as well as the Company’s Lac de Gras diamond project and for general working capital.
North Arrow’s exploration programs are conducted under the supervision of Gordon Clarke, P.Geol (NT&NU), Vice President, Exploration for North Arrow and a qualified person under NI 43-101.