North Arrow Closes $2.42M Private Placement Financing and Sale of Royalty Interests in Loki Project, NWT

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, May 18, 2023 (GLOBE NEWSWIRE) -- North Arrow Minerals Inc. (TSXV-NAR) (“North Arrow” or “the Company”) is pleased to announce it has closed the non-brokered private placement financing announced on April 24, 2023.

The Company has issued 22,976,999 non-flow-through units (the “Non-FT Units”) at a price of $0.06 per Non-FT Unit and 13,066,500 flow-through units (the “FT Units”) at a price of $0.08 per FT-Unit for combined total gross proceeds of $2,423,940. Each Non-FT Unit consisted of a single non-flow-through common share of the Company (each a “Non-FT Share”) and one transferable non-flow-through common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to purchase one additional Non-FT Share at a price of $0.10 for a period of 24 months up to May 17, 2025.

Each FT Unit consisted of a single flow-through common share of the Company (each a “FT Share”) and one half (1/2) of one transferable non-flow-through common share purchase warrant (each a “FT Warrant”). Each whole FT Warrant entitles the holder to purchase one non-flow-through common share of the Company at a price of $0.12 for a period of 24 months up to May 17, 2025. Each FT Share has been issued as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act (Canada). The Company will use the gross proceeds from the offering of the FT Units to incur eligible “Canadian exploration expenses” that will qualify as “Flow-through critical mineral mining expenditures” as such terms are defined in the Tax Act (the “Qualifying Expenditures”) on the Company’s Canadian mineral exploration properties. The Qualifying Expenditures will be incurred on or before December 31, 2024, and will be renounced by the Company to the purchasers of the FT Units with an effective date no later than December 31, 2023.

Insiders of the Company participated in the private placement on the same terms and conditions as non-arm’s length subscribers, subscribing for a total of 200,000 FT Units and 833,333 Non-FT Units for aggregate proceeds of $66,000.

Proceeds from the private placement will be used to advance North Arrow’s Canadian lithium projects, particularly its 100% owned DeStaffany Lithium Project located within the Yellowknife Pegmatite Province, NWT, and for general corporate purposes.

In connection with the placement, North Arrow paid finder’s fees of $77,254.80 and 676,620 finder’s warrants (the “Finder’s Warrants”). Each Finder’s Warrant has the same terms as a Warrant. All securities issued in the private placements are subject to a hold period expiring September 18, 2023.