CALGARY, ALBERTA--(Marketwired - May 26, 2014) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI)(OTCBB:CSPUF) announces that it is proposing to undertake, subject to TSX Venture Exchange approval, two concurrent non-brokered private placements.
One placement will be up to 6.0 million units ("Units") at a price of $0.50 per Unit for total gross proceeds of up to $3.0 million. Each Unit will consist of one common share of the Corporation and one-half of one common share purchase warrant ("Warrants"). Each whole Warrant will entitle the holder to purchase an additional common share of the Corporation for a period of one year at an exercise price of $0.50 per share. The placement of Units is expected to close on or about June 2, 2014.
The second placement will be up to 20.0 million common shares of the Corporation issued on a flow-through basis pursuant to the Income Tax Act ("Flow-Through Shares") at a price of $0.50 per share for total gross proceeds of up to $10.0 million. The Flow-Through Shares issued pursuant to this placement will entitle, subject to various income tax considerations, Canadian investors to a renunciation in 2014 of Canadian Exploration Expense expenditures to be made by CSRI up to December 31, 2015 equal to 100% of their total subscription amount. The placement of Flow-Through Shares is expected to close on or about June 2, 2014.
The Corporation may pay finder's fees of up to 6% in cash.
All the securities issued pursuant to the private placements will be subject to a four month restricted resale period under Canadian securities laws.
The net proceeds of the proposed private placements will be used to drill a horizontal well at c-81-H/94-B-1 and for general corporate purposes. This well, located at Farrell Creek, British Columbia is expected to be spud prior to June 24, 2014 and will serve to retain land as well as being potentially fracture stimulated and tied-in for production.
CSRI is a natural resources Corporation focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.
Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
On behalf of the Board of Directors, CANADIAN SPIRIT RESOURCES INC.
Alfred Sorensen, 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.
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