Churchill Resources Announces Closing of Upsized Private Placement of Charity Flow-Through Shares for Proceeds of C$2.0 Million

About this update from Churchill Resources Inc

[{"type":"text","content":" TORONTO, Aug. 27, 2021 (GLOBE NEWSWIRE) -- Further to its news release dated August 13, 2021, Churchill Resources Inc. (“Churchill” or the “Company”) (TSXV: CRI) is pleased to announce the closing of a non-brokered private placement of 5,000,000 common shares (the “Charity FT Shares”), issued on a flow-through basis at a price of C$0.40 per Charity FT Share for gross proceeds of C$2,000,000 (the “Offering”). Due to strong investor demand, the Offering was upsized from C$1,500,000. “We are very grateful for the continued support of our existing shareholders and excited to welcome new institutional resource funds into the fold who subscribed for the majority of this financing. We look forward to kicking off our fall 2021 field season and advancing our projects in the coming weeks,” stated Paul Sobie, Chief Executive Officer of Churchill. The Company intends to use the gross proceeds of the Offering for the exploration of the Company’s key projects, which may include its Taylor Brook Project in Newfoundland, its recently optioned Florence Lake Project in Labrador, its Pelly Bay Project in Nunavut and its White River Project in Ontario. The gross proceeds from the issuance of the Charity FT Shares will be used for “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)) (the “Qualifying Expenditures”), which will be renounced with an effective date no later than December 31, 2021 to the purchasers of the Charity FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the Charity FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber of Charity FT Shares for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures. Red Cloud Securities Inc. acted as a finder in connection with the Offering. Pursuant to the Offering, the Company paid total cash finder’s fees of C$107,710 and issued to Red Cloud 269,275 finder warrants of the Company (the “Finder’s Warrants”). Each Finder’s Warrant is exercisable to acquire one common share of the Company at a price of C$0.40 at any time on or before August 27, 2023. The Charity FT Shares and the Finder’s Warrants (including any common shares issuable on exercise thereof) are subject to a statutory four...

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