TORONTO, July 10, 2024 (GLOBE NEWSWIRE) -- Churchill Resources Inc. (“Churchill” or the “Company”) (TSXV: CRI) is pleased to provide an update on its Taylor Brook nickel project, and announce a non-brokered private placement consisting of the sale of up to 50,000,000 units (“Units”) of the Company for gross proceeds of up to $2,500,000 (the “Offering”), each as further described below.
Taylor Brook Project Update: Spring Work Program
The Company previously announced on February 29, 2024 that drilling and geophysical surveys completed during the winter have confirmed a previously unknown, large, dynamic magmatic intrusive system (“TB Magmatic Trend”) that extends from the Layden Nickel Showing area southeasterly for 13km to the Taylor Brook Gabbro Complex (“TGBC”) South Lobe. In particular,
The TBGC South Lobe is of priority interest due to its intense, coincident, gravity and magnetic anomalies proximal to the rifted continental margin, a locale where nickel districts are commonly found;
Drilling at Layden has successfully hit gabbroic intrusive rocks and sulphide-bearing breccias in all holes targeting CSAMT (“Controlled Source Audio Magneto-Telluric) survey resistivity low features; and
Airborne MMT (“Mobile Magneto-telluric”) resistivity surveys have successfully mapped the high-grade nickel-bearing Layden intrusive area and the TB Magmatic Trend.
Churchill is presently well into an extensive 2024 exploration program targeted on the TB Magmatic Trend, and has been active since April with line-cutting, ground CSAMT, Induced Polarization (“I.P.”) and Time Domain Electromagnetic (“TDEM”) surveys, diamond drilling, and borehole electromagnetic (“BHEM”) surveys. Four selected target areas have been identified along the TB Magmatic Trend with compelling exploration results to date as per Figure 1 and the following brief descriptions.
The TBSL-1 Area lies just inside the South Lobe of the Taylor Brook Gabbro Complex and along the eastern flank of the TB Magmatic Trend. A 600m long Ni-Cu-Co soil anomaly has been defined over the area, including a sample that assayed 584ppm Ni, 1172ppm Cu and 665ppm Co – the highest soil results on the property. Partial CSAMT coverage of this area has identified compelling resistivity low targets which are presently being comprehensively followed-up with CSAMT, IP, and TDEM surveys to delineate drill targets (Figure 2).
The TBSL Gravity Area contains the +30mGal bouguer gravity anomaly from the 2016 National Gravity Survey which correlates with a very strong magnetic response within the South Lobe, as well as the centre of the TB Magmatic Trend. This area will follow TBSL-1 with blanket CSAMT surveying and follow-up IP and TDEM surveys to outline new targets for drilling, as well as the extensions of targets identified on TBSL-1 (Figure 2).
Figure 1
Figure 1 – MMT Resistivity Level Plans of TB Magmatic Trend and Four Priority Targets
The Layden Extension Area captures the known Layden high-grade mineralization and is interpreted to be a faulted offset sill-like body to the west, which branches off the north end of the TB trend. Expanded CSAMT surveys here for detailed structure and geology will be followed with targeted IP and TDEM surveys on the resistivity low features to generate drill targets.
The LIT-1 Area on the western flank of the TB Magmatic Trend has returned soil samples assays to 575ppm nickel within a 300m long Ni-Cu-Co soil anomaly where prospecting and trenching have confirmed gabbronoritic host rocks at surface. Anomalous nickel and copper assays in float samples are found ~500m south of this area. As at TBSL-1, partial CSAMT coverage of this area has identified compelling resistivity low targets which will be comprehensively followed-up with CSAMT, IP and TDEM surveys for drill targets.
Taylor Brook Chargeability Targets
Work at the TBSL-1 Grid has identified compelling chargeability targets coincident with soil anomalies, both within the Southern Lobe of the Taylor Brook Gabbro Complex (Figures 1 and 2). Drilling is expected to commence in mid-August 2024 to testing these targets (per Figure 2).
The “Supercharger Target” TB-01, identified on Figure 2, exhibits an extremely high component to the chargeability response consistent with the physical property measurements from rocks and core containing massive, semi-massive and net-textured nickel sulphide mineralization at Layden. These high values are attributed to the nickel sulphide pentlandite, which is known to exhibit high conductivity and therefore probably high chargeability. Peak responses were as high as 400 milliV/V and 80 milliV/V, over top of an already strongly anomalous 50 milliV/V anomaly amplitude. Background chargeability is 10 to 15 milliV/V. A mix of disseminated sulfides and semi-massive sulfides is therefore quite possible in this zone. Thus far from the Gradient IP data TB-01 is indicated to be greater than 750m in length extending onto the neighbouring Gravity grid, where line-cutting is commencing to allow the geophysical surveys to trace the entire anomaly. Similarly, the grid is being expanded to the west to allow for complete coverage of the TB-03 and TB-05 targets. CSAMT and TDEM surveys are arranged to follow the IP work, to increase the understanding of the size, depth, and orientation of the chargeability targets prior to drill testing.
The Offering will consist of the sale of up to 50,000,000 Units at a price of $0.05 per Unit for gross proceeds of up to $2,500,000. Each Unit will consist of one common share of Churchill (each, a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at a price of $0.15 at any time prior to the date that is 24 months following the completion of the Offering.
In connection with the Offering, the Company may pay to eligible finders a fee equal to 7.0% of the gross proceeds raised by the Company from the sale of Units to subscribers directly introduced to the Company by such finders. In addition, the Company may issue to eligible finders non-transferable warrants equal to 7.0% of the number of Units sold in the Offering to subscribers directly introduced to the Company by such eligible finders. Each finder’s warrant will entitle the holder to acquire one Common Share at a price of $0.05 per Common Share for a period of 24 months from the date of issuance.
The Company intends to use the net proceeds from the Offering on the exploration of the Company’s key nickel projects in Newfoundland & Labrador and for general working capital purposes. The Offering is expected to close on or about July 19, 2024 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (“TSXV”). The securities issued pursuant to the Offering will be subject to a statutory hold period of four months and one day from the closing date of the Offering.
Malik Easah, a director of the Company, is expected to acquire 10,000,000 Units in the Offering. Participation Mr. Easah in the Offering will be considered a “related party transaction” pursuant to Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Mr. Easah’s participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Mr. Easah in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
About Churchill Resources Inc.
Churchill Resources Inc. is a Canadian exploration company focused on high grade, magmatic nickel sulphides in Canada, principally at its prospective Taylor Brook and Florence Lake properties in Newfoundland & Labrador. The Churchill management team, board and its advisors have decades of combined management experience in mineral exploration and in the establishment of successful publicly listed mining companies, both in Canada and around the world. Churchill’s Taylor Brook and Florence Lake projects have the potential to benefit from the province’s large and diversified minerals industry, which includes world class nickel mines and processing facilities, and a well-developed mineral exploration sector with locally based drilling and geological expertise.
The technical and scientific information in this news release has been reviewed and approved by Dr. Derek H.C Wilton, P.Geo., FGC and Mr. Jeremy S. Brett, P.Geo., each of whom is a “qualified person” as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Wilton is an honourary research professor of Economic Geology at Memorial University and Mr. Brett is a senior geophysical consultant. Each of Messrs. Wilton and Brett are independent of the Company for the purposes of NI 43-101.
Further Information
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Cautionary Note Regarding Forward Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the completion of the Offering on the terms described herein or at all, receipt of all required regulatory approvals in order to complete the Offering, the intended use of proceeds from the Offering, the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the Company’s properties; failure to identify any mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management’s discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
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