CALGARY, ALBERTA--(Marketwired - Jun 4, 2014) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (CSPUF) announces that it has accepted certain subscriptions on its non-brokered private placements previously announced on May 26, 2014. The Corporation may accept further subscriptions in regards to these private placements.
In the first private placement, the Corporation issued 3,060,000 units ("Units") at a price of $0.50 per Unit. Each Unit consists of one common share of the Corporation and one half of one common share purchase warrant ("Warrants"). Each whole Warrant entitles the holder to purchase one common share of the Corporation at $0.50 up to June 3, 2015.
In the second private placement, the Corporation issued 7,040,000 common shares on a flow-through basis pursuant to the Income Tax Act (qualifying for Canadian Exploration Expense) at a price of $0.50 per share.
The total gross proceeds raised from both private placements was $5.1 million. Finders' fees of $295,500 were paid in consideration of the private placements. As a result of the closing of both private placements, there are now 120,224,691 common shares of CSRI outstanding. All securities issued or issuable as a result of both private placements are subject to a hold period under Canadian securities laws until October 4, 2014.
The net proceeds from both private placements will be used to drill a horizontal well at c-81-H/94-B-1 and for general corporate purposes. This 100% working interest 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.
The private placements are considered related party transactions under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as J.R. Richard Couillard, a Director of the Corporation, has participated in the private placements by purchasing 200,000 Units. Upon completion of both private placements Mr. Couillard owns 0.32% of the outstanding common shares of the Corporation, and 0.40% of the outstanding common shares of the Corporation assuming full exercise of the Warrants. The transactions are exempt from the formal valuation and minority shareholder vote requirements of MI 61-101 as the fair market value of the private placements does not exceed 25% of the Corporation's market capitalization.
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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