Canadian Arrow receives CDN $1 million payment for 50% of Hart Nickel Project net smelter royalty
SUDBURY, ON, Jan. 3, 2012 /CNW/ - Canadian Arrow Mines, Ltd.
(the 'Company') reports it has received a lump sum payment of CDN $1 million from Liberty Mines Inc. (LBE) in exchange for LBE exercising its right to purchase half of Canadian Arrow Mines' retained two percent net smelter royalty (NSR) on the Hart Nickel Project. The Company retains the remaining one percent (1%) NSR which will require negotiations between both parties to arrive at a mutually acceptable purchase price.Under the terms of an Option and Joint Venture Agreement on the Hart Project entered into in 2006, LBE optioned 100% ownership of the Hart claims from the Company in exchange for various payments as well as a two percent NSR. Also under the terms of the Agreement LBE was entitled to purchase one percent of the NSR for an immediate lump sum payment of CDN $1 million at any time.
The Company plans to resume production in 2012 on its past producing Alexo mine located in the Abitibi nickel district east of Timmins Ontario containing NI 43-101 indicated resources of 9.9M lbs of nickel within 473,000 tonnes averaging 0.96% nickel. Cash flow from Alexo operations is intended to finance the development of the Company's flagship Kenbridge nickel project. Kenbridge contains 98M lbs of nickel and 52M lbs of copper within 7.1M tonnes grading 0.62% Ni and 0.33% Cu of NI 43-101 of open pit and underground measured and indicated resources.
The Alexo and Kelex mines have historically produced 87,000 tonnes averaging 3.06% nickel from both underground and open pit mining. Exploration potential exists along strike and at depth on both zones.
The information in this release was prepared under the direction of Mr. Kim Tyler, P. Geo., President of the Company, a Qualified Person as defined by NI 43-101.
About Canadian Arrow Mines:
Canadian Arrow Mines Limited is developing two advanced nickel/copper mining projects located near existing infrastructure in Ontario, Canada. Its principal asset is the Kenbridge nickel-copper sulphide deposit located near Kenora, Ontario that remains open in three directions, is equipped with a 620 m shaft and has never been mined.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Additional information relating to Canadian Arrow is available on SEDAR at www.sedar.com
This press release may contain 'forward-looking statements' within the meaning of the Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume, any obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Canadian Arrow Mines Ltd.
CONTACT: Visit the website at www.canadianarrowmines.ca, or contact Mr.
Kim
Tyler President and Director toll free, 1-877-673-5462.
