DGAP-News

Spruce Ridge Declares Dividend-in-kind of Shares of Canada Nickel Company

DGAP-News: Spruce Ridge Resources Ltd Spruce Ridge Declares Dividend-in-kind of Shares of Canada Nickel Company 27.07.2021 / 17:45 The issuer is solely responsible for the content of this announcement. Spruce Ridge Resources Ltd. (TSX-V SHL) - ('Spruce Ridge' or the 'Company') is pleased to announce that its board of directors has declared a dividend-in-kind (the 'Dividend') of 2,500,000 of the 8,100,000 common shares of Canada Nickel Company Inc. (TSXV: CNC) ('CNC Shares') held by Spruce Ridge. The Dividend is payable on or before September 3, 2021 to holders of record of Spruce Ridge shares at the close of business on August 6, 2021 (the 'Record Date'). This Dividend will be the second payable as the first Dividend of 2,500,000 shares were distributed In September 2020.

The CNC Shares were acquired by Spruce Ridge in connection with the previously announced sale of its interest in the Crawford Nickel-Cobalt Sulphide project, details of which are contained in the Company's previous news releases issued on October 1, 2019 and February 19, 2020.

Spruce Ridge has designated the Dividend to be an 'eligible dividend' for the purposes of the Income Tax Act (Canada) and corresponding provincial legislation. The dividend will be taxable and non-residents of Canada will be subject to Canadian withholding taxes. Shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors or contact their local office of the Canada Revenue Agency and, where applicable, the provincial taxation authorities.

The Dividend will be distributed on a pro rata basis. No fractional shares or cash in lieu thereof (or any other form of payment) will be payable under the Dividend. Any fractional interests in CNC Shares under the Dividend will be rounded up or down to the nearest whole number of shares. Based upon the number of common shares of Spruce Ridge ('Spruce Ridge Shares') currently outstanding, and ignoring the effect of rounding for fractional interests, one (1) CNC Share will be paid under the Dividend for every 64.92 Spruce Ridge Shares held on the Record Date. It is expected that certificates evidencing the CNC Shares paid under the Dividend will be mailed to shareholders of Spruce Ridge on or shortly after August 28, 2021. Spruce warrant-holders who deliver complete exercise packages of their warrants no later than 5:00 p.m. on August 6, 2021 will be entitled to participate in the distribution.