Kivalliq Energy Announces $4.5 Million Financing
April 2, 2013
Not For Distribution to United States Newswire Services or For Dissemination in the United States
Vancouver, B.C. – Kivalliq Energy Corporation ("KIV: TSX-V" Kivalliq") today announced a non-brokered private placement financing to raise gross proceeds of CDN $ $4,500,000.
The financing will consist of approximately 15 million units (“Units”), at a price of $0.30 per Unit (the "Offering"). Each Unit consists of one common share and one whole warrant. Each whole warrant will allow the holder to acquire an additional common share of Kivalliq at a price of $0.50 per share for a period of two years following the date of closing.
Kivalliq intends to use the net proceeds of the Offering to fully fund the first phase of its 2013 Exploration Program at the Angilak Property in Nunavut, Canada and for general working capital purposes. The budget for phase one has been adjusted to $4 million from $8 million (see news release dated February 5, 2013) and includes high priority drilling and geophysical activities in key areas that must be completed before break-up sometime in June. Pending results and market conditions, Kivalliq will continue the second phase of the proposed 2013 Exploration Program at Angilak, with additional core drilling and geophysical, geological, geochemical and engineering surveys in the field.
The completion of the Offering is subject to TSX Venture Exchange approval. The securities issued by Kivalliq in connection with the Offering will be subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws. A portion of the Offering may be subject to finders' fees.
The Offering is being made pursuant to prospectus exemptions in all provinces of Canada and in other jurisdictions as may be determined by Kivalliq. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based uranium exploration company holding Canada’s highest-grade uranium resource outside of Saskatchewan’s Athabasca Basin. Its flagship project, the 340,268 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “District Scale” potential of the Angilak Property.
Kivalliq’s team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and project partner Nunavut Tunngavik Inc. (“NTI”) in order to advance the Angilak Property. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.
On behalf of the Board of Directors
James R. Paterson, CEO
Kivalliq Energy Corporation
For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com (m.kivalliqenergy.com) or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at email@example.com
Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies, for more information please visit www.auroraresource.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including the completion of the Offering and the budget and exploration program proposed for the Angilak Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Cautionary Note concerning estimates of Inferred Resources:
This news release uses the term “inferred resources”. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.