North Arrow and EHR Resources form Partnership to Evaluate Q1-4 Diamond Deposit, Naujaat Diamond Project, Nunavut

VANCOUVER, British Columbia, June 01, 2020 (GLOBE NEWSWIRE) -- North Arrow Minerals Inc. (TSXV-NAR) is pleased to announce it has entered into an option agreement with EHR Resources Ltd. (ASX–EHX) to fund further evaluation of the Q1-4 diamond deposit at the Naujaat Diamond Project, Nunavut. North Arrow presently maintains a 100% interest in the Project, including the Q1-4 diamond deposit, located only 9km from the coastal community of Naujaat.

Under terms of the option agreement, EHR can earn a 40% interest in the Naujaat Project by investing $5.6M to collect a 1,500 to 2,000 tonne preliminary bulk sample during the 2021 summer field season. As part of the agreement, EHR has posted a $300,000 non-refundable advance to be used by North Arrow, as operator, to preposition fuel and other supplies by sealift in 2020. In order to proceed with the option and 2021 bulk sample program, EHR must, by April 2021, close a financing sufficient to fund the remaining $5.3M investment in accordance with the terms of the option agreement. In addition to the option agreement, North Arrow and EHR have also entered into a non-binding letter of intent to negotiate a second option agreement under which EHR may elect, after completion of the 2021 preliminary bulk sampling program, to earn an additional 20% in the Q1-4 diamond deposit by funding collection of a 10,000 tonne bulk sample.

Ken Armstrong, President and CEO of North Arrow commented, “Today’s announcement puts North Arrow’s Naujaat Diamond Project on a clear path for continued evaluation with a focus on determining diamond size distribution and valuation of the Q1-4 diamond deposit. We are especially pleased to form this partnership with EHR Resources, whose team has a combination of recognized diamond sector expertise and an impressive commercial track record in the resource sector. EHR’s Managing Director, Peter Ravenscroft, is a leading expert in the statistical evaluation of diamond deposits and populations – an ideal partner for understanding Q1-4 deposit’s unique diamond population.”

EHR’s Managing Director, Mr Peter Ravenscroft, said, “We look forward to working closely with North Arrow on the modelling of Naujaat diamond quality and value, with both companies strongly agreeing that there is a substantial upside opportunity in value provided by the Q1-4 diamond deposit’s population of rare orangey yellow coloured diamonds.”