Enters into Option Agreements to Acquire two Properties TORONTO, Aug. 30, 2021 (GLOBE NEWSWIRE) -- Churchill Resources Inc. (“Churchill” or the “Company”) (TSXV: CRI) is pleased to announce that is has entered into two option agreements on properties adjacent to the known Layden Ni-Cu-Co showings at the Taylor Brook Property, NL. The two properties were covered with the VTEM-Plus™ survey flown by Geotech for CRI at Taylor Brook earlier this year, and high priority anomalies were identified on both that are on-trend with the conductors which appear to be associated with the known mineralization.
Paul Sobie, CEO of Churchill stated, “We are very pleased to complete these deals which consolidate the Layden Ni-Cu-Co area along with the Altius claims and allow for seamless exploration. We’re in the permit application process presently to undertake a drill program this fall on all of the compelling VTEM conductors in this area, and are very much looking forward to commencing this work.”
Terms of Option Agreements
Under the terms of the agreement with the first optionor, Churchill optioned four contiguous claims covering a 1.0km2 area under one mineral license. On execution of the agreement Churchill paid $7,500 and agreed to issue 43,772 common shares (“Churchill Shares”) within five days of receipt of regulatory approval for the agreement. Subsequent option payments over the next 24 months include:
(a) on or before the 12-month anniversary of the effective date of the option: payment of (i) $15,000; and (ii) issuance of 45,000 Churchill Shares; and
(b) on or before the 24-month anniversary of the effective date of the option: (i) payment of $50,000; and (ii) issuance of 100,000 Churchill Shares.
Under the terms of the agreement with the second optionor, Churchill optioned 15 contiguous claims covering a 3.75km2 area under one mineral license. On execution of the agreement Churchill paid $7,500 and agreed to issue 58,772 Churchill Shares within five days of receipt of regulatory approval for the agreement. Subsequent option payments over the next 24 months include:
(a) on or before the 12-month anniversary of the effective date of the option: payment of (i) $15,000; and (ii) issuance of 100,000 Churchill Shares; and
(b) on or before the 24-month anniversary of the effective date of the option: (i) payment of $50,000; and (ii) issuance of 200,000 Churchill Shares.
On execution of each option agreement, Churchill granted to each of the vendors a 2.0% net smelter returns royalty on the respective properties, of which 1.0% may be purchased by the Company for $1.0 million.
Churchill may also satisfy $5,000 and $20,000 of the portion of the remaining cash payments for each option, respectively, by issuing Churchill Shares in lieu of such partial cash payment. The issue price for the Churchill Shares, as and when they are issued, shall be based on the five (5) day volume weighted average trading price of Churchill Shares on the TSX Venture Exchange (the “TSXV”) or on such other recognized stock exchange in Canada on which the Churchill Shares are then listed, based on the 10 days preceding the date of the election by Churchill to issue Churchill Shares in lieu of cash.
The option agreements, including the Churchill Shares issuable thereunder, are subject to the approval of the TSXV.
About Churchill Resources Inc.
Churchill is managed by career mining industry professionals which 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 Ni-Cu-Co showings at Taylor Brook, Florence Lake and Pelly Bay, and 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.