CALGARY, ALBERTA--(Marketwired - June 17, 2016) - This document corrects and replaces the one that was sent today at 13:04 ET.
Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI)(OTCBB:CSPUF) is pleased to announce that it is increasing, subject to TSX Venture Exchange approval, its previously announced non-brokered private placement offering from $500,000 to $640,000. The private placement is comprised of a combination of 1,000,000 common shares of the Corporation issued on a flow-through basis pursuant to the Income Tax Act ("Flow-Through Shares") at a price of $0.10 per Flow-Through Share and 5,400,000 units of the Corporation ("Units") at a price of $0.10 per Unit. The Flow-Through Share portion of the offering closed on June 1, 2016, and the Unit portion of the offering is expected to close by the end of June 2016.
The Flow-Through Shares issued pursuant to this placement will entitle, subject to various income tax considerations, Canadian investors to a renunciation in 2016 of Canadian Exploration Expense expenditures to be made by CSRI up to December 31, 2017 equal to 100% of their total subscription amount.
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 $0.10 per share.
The Corporation may pay finder's fees of up to 6% in cash.
All the securities issued pursuant to the offering will be subject to a four-month restricted resale period under Canadian securities laws.
The net proceeds of the offering will be used to gather reservoir information at the Corporation's c-69-H/94-B-1 well that was drilled at Farrell Creek, British Columbia in the first quarter 2016, and for general corporate purposes.
The offering is a related party transaction under Multilateral Instrument 61 - 101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as Richard Couillard, President and Chief Executive Officer of the Corporation and Elmag Investments Inc., an insider and control person of the Corporation will be purchasing 200,000 and 3,000,000 Units, respectively. Following completion of the Unit portion of the private placement, Richard Couillard will own 1,143,350 common shares of the Corporation or 0.75% of the outstanding common shares of the Corporation and Elmag Investments Inc. will own 55,764,500 common shares of the Corporation or 36.54% of the outstanding shares of the Corporation.
The offering is exempt from the formal valuation and minority shareholder vote requirements of MI 61 - 101 as the fair market value of the insider's participation in the offering does not exceed 25% of the Corporation's market capitalization. The offering has been approved by a majority of the members of the Board of Directors of the Corporation who have determined that they will not be participating in the offering.
CSRI is a natural resource company 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.
Richard Couillard, President and Chief Executive Officer
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