The company said that both projects were acquired to cover unexplained kimberlite indicator mineral trains identified from public datasets.

The transaction is subject to separate purchase and sale agreements with private company Anglo Celtic Exploration.

Under the terms of the agreement, North Arrow will acquire a 100% interest in each property in consideration of a 1% gross overriding royalty. The company will preserve the right to buy back half of each royalty (0.5%) for $1m at any time.

North Arrow will also issue to Anglo Celtic a total of 500,000 (250,000 for each agreement) transferrable share purchase warrants. Each warrant will entitle Anglo Celtic Exploration to buy one common share of North Arrow at a price of $0.65 for a period of five years from the closing date of the purchase and sale.

The purchase and sale of both properties is subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

The Mel project comprises nearly 183,000 acres on the Melville peninsula, while Luxx project consists of about 100,000 acres on tidewater of Chesterfield Inlet.