Canadian Spirit Resources Inc.
TSX VENTURE : SPI
OTC Bulletin Board : CSPUF

Canadian Spirit Resources Inc.

December 12, 2011 06:00 ET

Canadian Spirit Resources Inc. Announces Initial Closing of Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2011) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (OTCBB:CSPUF) announces that the Corporation has placed 1.6 million units (the "Units") at a price of C$0.75 per share, for gross proceeds of C$1.2 million pursuant to a private placement announced on November 18, 2011 and amended on December 7, 2011. A final closing will occur once all confirmed subscriptions have been received and accepted. The placement of Units is subject to TSX Venture Exchange final approval. Each Unit consists of one Common Share and one-half of one Share Purchase Warrant (the "Warrants"). Each whole Warrant entitles the holder to purchase an additional Common Share of the Corporation for two years at an exercise price of C$1.10 per share.

All the securities issued pursuant to the private placement are subject to a 4 month restricted resale period.

Proceeds of the private placement will be used to further develop the Corporation's principal resource property at Farrell Creek, British Columbia and for general corporate purposes.

Pursuant to the policies of the TSX Venture Exchange and to Multilateral Instrument 61-101, the private placement is classified as a "related party transaction" as Elmag Investments Inc., a shareholder who owns or has control and direction over more than 10% of the outstanding shares of the Corporation, has subscribed for 500,000 Units and will hold 11,031,900 (14.6% of the outstanding Common Shares). The private placement was unanimously approved by the directors of the Corporation who have determined that exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 are available as the fair market value of the securities being issued does not exceed 25% of the Corporation's market value.

Finders' fees of C$5,638.50 in cash will be paid in respect of certain subscriptions under this initial closing.

Following this initial closing of the private placement, there will be approximately 75.4 million shares of the Corporation outstanding.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The Corporation is currently evaluating the productive capability of the Montney Formation at its principal resource property at Farrell Creek, British Columbia which began production in January 2011.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Don Gardner, Chief Executive Officer & Secretary

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

NEITHER THE 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 NEWS RELEASE

Contact Information

  • Canadian Spirit Resources Inc.
    Don Gardner
    (403) 539-5005
    (403) 262-4177 (FAX)
    don.gardner@csri.ca

    Canadian Spirit Resources Inc.
    Phil Geiger
    (403) 539-5005
    (403) 262-4177 (FAX)
    phil.geiger@csri.ca