North Arrow Minerals Inc. and Crystal Exploration Inc. have entered into a purchase and sale agreement by which the latter will acquire the former’s 100% interest in the Contwoyto Project, Nunavut, including the Butterfly gold prospect.

The terms of agreement spell out that the consideration for the acquisition of North Arrow’s 100% interest in the project, will be “US$ 100,000 in cash and 1,000,000 shares of Crystal, of which US$ 50,000 cash will be paid and 500,000 shares issued at closing of the transaction”.  North Arrow explained that the balance of the cash and share payments are due on or before December 15, 2018.

“As additional consideration, North Arrow will retain a 1.0% gross overriding royalty on diamonds and a 1.0% net smelter returns royalty on precious and base metals,” North Arrow said when making the announcement. “Half (0.5%) of the royalties can be purchased by Crystal at any time for a payment of US$ 1.0 million. North Arrow will also receive conditional share payments of 500,000 Crystal shares in the event Crystal reports an inferred gold resource exceeding 250,000 ounces associated with the Butterfly gold prospect and a further 500,000 Crystal shares in the event Crystal reports a separate inferred resource of at least 250,000 ounces gold outside of the Butterfly area.”

Apart from the Contwoyto Project, North Arrow has interests in Naujaat (formerly Qilalugaq) (NU), Mel (NU), Pikoo (SK), LDG (NT), and Loki (NT) Diamond Projects. “North Arrow also maintains a 100% interest in the Hope Bay Oro Gold Project (NU), located approximately 3km north of TMAC Resources’ new Doris Gold Mine,” the Company noted.