Churchill Announces Acquisition of 100% Interest in White River Diamond Property, Ontario
07 March 2023 - 9:01AM
Churchill Resources Inc. (“
Churchill” or the
“
Company”) (
TSXV: CRI) is pleased
to announce that it has exercised an existing option to acquire a
100% interest in certain mineral properties with prospective
diamond targets plus potential nickel and lithium targets located
immediately west of the town of White River, Ontario (the
"
Properties"). A subsidiary of the Company entered
into an option agreement on February 9th, 2017 (the “
Option
Agreement") with Rudolph Wahl and Frederick Lowndes
(collectively, the “
Vendors”) to acquire a 100%
interest in the Properties, subject to a 2.0% net smelter royalty
(“
NSR”) on metals and minerals and a 3.0% gross
over-riding royalty (“
GOR”) on diamonds found on
the Properties in favour of the Vendors (the
“
Transaction”). The Company may buy back 1.0% of
the NSR for $1.0million and 1.5% of the GOR for $2.0m, and retains
the first right to the remaining royalties.
The Vendors recently transferred 816 mineral
claims to Churchill’s subsidiary, Churchill Diamond Corporation,
bringing the total property to 1,224 claims that comprise
Churchill’s White River Project with an area of 28,700ha. Since
entering into the Option Agreement, the Company has issued an
aggregate of 2,850,000 common shares (“Common
Shares”) to the Vendors and incurred the required
cumulative exploration expenditures in connection with the
Properties. Churchill carried out one season of exploration on the
project in 2017 since entering into the Option Agreement.
Paul Sobie, CEO of Churchill stated “We are very
pleased to exercise the option at White River which features known
diamond-bearing kimberlitic rocks in an extremely attractive
setting just south of the Trans-Canada Highway between the towns of
Marathon and White River. The property is intruded by a number of
mafic-ultramafic dykes swarms including kimberlitic dykes, of which
some may have magmatic nickel-copper-cobalt potential given the
Tyco Project of Palladium One Mining Inc. some 30km north. Several
of the Companies’ 2017 till samples returned highly anomalous
numbers of sulphide grains which will be followed up when
exploration activities resume. In addition, we’ll assess the hard
rock pegmatitic lithium potential of the property.”
In connection with the exercise of the option to
acquire the Properties, the Company has agreed to settle an
outstanding debt in the amount of $50,000 (the
“Debt”), representing an annual advance royalty
owning to the Vendors under the terms of the Option Agreement, by
issuing an aggregate of 625,000 Common Shares at a price of $0.08
per Common Share to the Vendors (the “Shares for Debt
Transaction”). The Board of Directors has determined it is
in the best interests of the Company to settle the outstanding Debt
by the issuance of the Common Shares in order to preserve the
Company’s cash for ongoing operations.
Closing of the Shares for Debt Transaction is
subject customary closing conditions, including the prior approval
of the TSX Venture Exchange (“TSXV”). The Company
intends to close the Shares for Debt Transaction as soon as
practicable following receipt of the approval from the TSXV. The
Common Shares to be issued pursuant to the Shares for Debt
Transaction will be subject to a statutory hold period of four
months and one day from the date of issuance.
About Churchill Resources Inc.
Churchill is managed by career mining industry
professionals and currently holds four exploration projects, namely
Taylor Brook in Newfoundland, Florence Lake in Labrador, Pelly Bay
in Nunavut and White River in Ontario. All projects are at the
evaluation stage, with known mineralized Nickel-Copper-Cobalt
showings at Taylor Brook, Florence Lake and Pelly Bay, and
significantly diamondiferous kimberlitic intrusives at White River
and Pelly Bay. The primary focus of Churchill is on the continued
exploration and development of the Taylor Brook and Florence Lake
Nickel Projects.
Further Information
For further information regarding Churchill, please contact:
Churchill Resources Inc. |
Paul Sobie, Chief Executive Officer |
Tel. |
|
+1
416.365.0930 (o) |
|
|
+1 647.988.0930 (m) |
Email |
|
psobie@churchillresources.com |
Alec Rowlands, Corporate Consultant |
Tel. |
|
+1
416.721.4732 (m) |
Email |
|
arowlands@churchillresources.com |
FORWARD LOOKING
STATEMENTS: This press release contains
forward-looking statements, within the meaning of applicable
securities legislation, concerning the Company’s business and
affairs. In certain cases, forward-looking statements can be
identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or
‘‘does not expect’’, “intends” ‘‘budget’’, ‘‘scheduled’’,
‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’ or
variations of such words and phrases or state that certain actions,
events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or
‘‘will be taken’’, ‘‘occur’’ or ‘‘be achieved’’.
These forward-looking statements are based on
current expectations, and are naturally subject to
uncertainty and changes in circumstances that may cause actual
results to differ materially. Although the Company believes
that the expectations represented in such forward-looking
statements are reasonable, there can be no assurance that these
expectations will prove to be correct. Such statements include
statements with respect to: (i) the receipt of the approval for the
Shares for Debt Transaction from the TSXV; and (ii) the intended
timing of the closing of the Shares for Debt Transaction.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not such results will be
achieved. A number of factors, including those discussed
above, could cause actual results to differ materially from the
results discussed in the forward-looking statements. Any such
forward-looking statements are expressly qualified in their
entirety by this cautionary statement.
All of the forward-looking statements made
in this press release are qualified by these cautionary
statements. Readers are cautioned not to place undue reliance
on such forward-looking statements. Forward-looking
information is provided as of the date of this press release, and
the Company assumes no obligation to update or revise them to
reflect new events or circumstances, except as may be required
under applicable securities legislation.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release.
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