North Arrow Enters Agreement for $3 Million Private Placement

North Arrow Minerals Inc. (TSXV:NAR) has entered into a letter of engagement with Dundee Securities Ltd. on behalf of a syndicate that includes Haywood Securities Inc., for $3,002,000. Under the letter of engagement, the Underwriters have agreed to purchase 3,160,000 flow-through common shares of North Arrow through a private placement on a bought-deal basis, subject to all required regulatory approvals, at $0.95 per share.

As quoted in the press release:

In connection with the Offering, the Underwriters will receive a cash commission equal to 5 per cent of the gross proceeds raised under the Offering. The closing date of the Offering is scheduled on or about May 28, 2015. The Offering is subject to a number of conditions, including receipt of all regulatory approvals.

The Company intends to use the gross proceeds from the Flow-Through Shares for “Canadian exploration expenses” (within the meaning of the Income Tax Act (Canada)), with the Company using its best efforts to ensure that an amount equal to such proceeds will be used to incur Canadian exploration expenses related to the Company’s exploration projects. The Company will renounce such Canadian exploration expenses with an effective date of no later than December 31, 2015.

All securities issued as part of the Offering will be subject to a four-month hold period.

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