Kivalliq Energy Announces $7.4 Million Financing
Kivalliq Energy Corporation (TSXV:KIV) (the
�Company� or �Kivalliq�) today announced a non-brokered
private placement financing to raise gross proceeds of CDN$7,410,000.
The
Company intends to raise the funds by issuing up to 16,000,000 common shares
(the �Offering�), including 13,000,000 common shares at the price of CAD$0.45
per share and 3,000,000 common shares on a �flow-through� basis, pursuant to
the Income Tax Act (Canada) (the �Flow-Through Shares�), at a price of CAD$0.52
per Flow-Through Share.
The
Company intends to use the net proceeds of the Offering to explore and develop Kivalliq�s high-grade Lac Cinquante
uranium deposit, located within the Angilak Property
within Nunavut, Canada, and for general working capital purposes.
Closing
of the Offering is anticipated to occur on or about February 16, 2012 and is
subject to receipt of applicable regulatory approvals, including the TSX
Venture Exchange. The securities issued by Kivalliq
in connection with the Offering are subject to a four month �hold period� as
prescribed by the TSX Venture Exchange and applicable securities laws. Insiders
of the Company may participate in the Offering and 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 the Company. 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 is a uranium exploration
and development company and the first company in
Canada to sign a comprehensive agreement to explore for uranium on Inuit Owned
Lands in Nunavut.
Kivalliq�s 225,000 acre Angilak
Property in Nunavut hosts the high-grade Lac Cinquante
deposit, along with multiple highly mineralized target areas. With an NI 43-101
Inferred Mineral Resource of 1,779,000 tonnes grading
0.69% U3O8, totalling 27.13 million pounds U3O8,
(15.2 pounds U3O8/tonne) at a 0.2% U3O8 cut-off
grade, the Lac Cinquante Deposit is Canada�s highest
grade uranium deposit outside of the Athabasca Basin.
Since
acquiring the Angilak Property in 2008, Kivalliq has invested approximately $30 million conducting
systematic exploration, including ground and airborne geophysics, geological
mapping, prospecting and approximately 48,000 metres
of RC and diamond drilling.
On behalf of the Board of Directors
�Jim
Paterson�
James R. Paterson, CEO
Kivalliq Energy Corporation