North Arrow raising $2.2 million for Botswana gold exploration

North Arrow Minerals Inc. [NAR-TSXV] is upsizing a previously announced non-brokered private placement financing, which is now expected to raise $2.2 million, with proceeds earmarked for a first- year exploration program at the Kraaipan Gold Project in Botswana and for general working capital purposes. That’s up from an earlier $2.0 million target.

North Arrow said the private placement will now consist of 11 million units (up from 10 million) priced at 20 cents per unit. Each unit will consist of one post consolidation common share and one half transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of 30 cents. That option remains open for 18 months from the issue date. If the price of North Arrow’s post consolidation shares is 50 cents or greater for 10 consecutive trading days from a date beginning six months following the closing date of the private placement, the expiry date can be accelerated at the option of North Arrow.

News of the upsized financing came after the close of trading on September 17, 2024, when North Arrow shares were priced at 25 cents. The shares currently trade in a 52-week range of 65 cents and 15 cents.

In a press release on September 3, 2024, North Arrow announced an option deal with private U.K. firm Rockman Resources Ltd., enabling it to earn a 60% interest in the Kraaipan Gold Project.  The company also announced that the board of directors had approved a 10:1 share consolidation and a non-brokered private placement of up to $2.0 million on a post consolidation basis. It said the private placement is structured to take advantage of the listed issuer financing exemption whereby common shares issued pursuant to the exemption will be freely tradeable listed equity securities not subject to any hold period.

North Arrow can exercise the Kraaipan option (to earn up to 60%) by funding US$5 million of exploration expenses over a 3.0-year period. North Arrow can add an additional 20% interest by delivering a preliminary economic assessment and issuing $500,000 worth of shares to Rockman. The project consists of 1,400 square kilometres of mineral concessions covering a full 60-kilometre strike extent of the Kraaipan Greenstone Belt in Botswana. Harmony Gold’s Kalgold mine is located approximately 40 kilometres south of the project in South Africa.

“We are very pleased to be teaming up with Rockman to evaluate the Kraaipan greenstone belt in Botswana,’’ said North Arrow Chair Eira Thomas. “Work on the Kraaipan project will allow for an extended window of news flow to compliment North Arrow’s Canadian diamond and lithium exploration properties.

Prior to the September 3 announcement, North Arrow was aiming to capitalize on investor interest in lithium by evaluating spodumene pegmatites at its 100%-owned DeStaffany, LDG and MacKay lithium projects in the Northwest Territories.

North Arrow is led by President and CEO Ken Armstrong, a geologist and veteran of 27 years in the mineral exploration sector. A past President of the Northwest Territories & Nunavut Chamber of Mines, he has been involved in diamond, lithium, gold and nickel exploration, mainly in North America.