Kivalliq
Announces CDN $5 million Private Placement;
Lumina Capital Increases Investment
Kivalliq
Energy Corporation (TSX-V: KIV) ("Kivalliq"
or the "Company") today announced that Lumina Capital Limited
Partnership ("Lumina Capital") together with certain other
strategic investors, will subscribe for a total of CDN$5 million in a non
brokered private placement in Kivalliq consisting
of $4.5 million flow-through common shares of the Company (�Shares�)
and $500,000 non-flow-through Shares (the �Private Placement�).
The proceeds from this financing will be used to explore and develop Kivalliq�s high-grade Lac Cinquante
uranium deposit and other prospects located within the Angilak
Project in Nunavut, Canada, and for general working capital purposes.
�We thank our financial partners for
their commitment to the Company,� stated Jim Paterson, Kivalliq�s CEO. �From
their initial investment in the first quarter of 2010 they have continued to
be highly supportive of our efforts to deliver the first NI 43-101 mineral
resource at the Angilak Property by Q1 of 2011.�
The financing will consist of 7.1 million Shares, at a price of $0.70 per
Share. A finder�s fee will be payable on a portion of the Placement.
Directors and Officers of the Company may be participating in the
Private Placement. The financing is subject to regulatory approval and
the securities will be subject to a four month resale restriction.
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 with the Inuit of Nunavut to explore
for uranium on Inuit Owned Lands in Nunavut Territory, Canada.
Kivalliq�s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101
compliant)** and over 150 other uranium occurrences.
Since acquiring the project in 2008, the Company has spent approximately
$11.9 million on the property conducting systematic exploration which has
included ground and airborne geophysics, geological mapping and drilling.
This news release does
not constitute an offer to sell or a solicitation of an offer to buy any of
the securities in the United States. The securities have not been and will
not be registered under the United States Securities Act of 1933, as amended
(the �U.S. Securities Act�) or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
This news release is not
for distribution to United States news wire services or for dissemination in
the United States.
On behalf of the Board of
Directors
�James Paterson�
James Paterson CEO
Kivalliq Energy Corporation
For further information
about, Kivalliq Energy Corporation or this news
release, please visit our website at www.kivalliqenergy.com or contact Investor Relations at 1.888.331.2269 toll free, directly
at 604.646.4527 or by email at info@kivalliqenergy.com.
Kivalliq Energy Corporation is a member of
the Discovery Group of companies, for more information on the group visit www.discoveryexp.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.
** The
quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin
Corporation in 1986, and referenced by other subsequent sources. It was
prepared prior to the implementation of National Instrument 43-101 (NI
43-101) and should not be relied upon since it does not comply with NI 43-101
Standards of Disclosure for Mineral Projects. A Qualified Person has not
classified the historical estimates as current mineral resources or reserves,
and therefore, Kivalliq is not treating them as
such. Kivalliq has not completed any work to verify
these estimates, but ongoing exploration programs are designed to evaluate
the economic potential of the deposit and environs. It is uncertain if
further exploration will result in the deposit being classified a mineral
resource or reserve. However, the historical uranium resource estimate
is relevant because: it is indicative of a mineralized zone worthy of
follow-up exploration as it is based on drilling and surface
exploration carried out by what is believed to be knowledgeable
explorers in accordance with acceptable industry practices at the time of the
estimate. Historic estimates were originally classified as �indicated� and
�inferred� reserves, plus a third �possible� category; however, the
equivalent categories acceptable under NI 43-101 are not known at this time.
Certain
disclosures in this release, including management's assessment of plans and
projects and intentions with respect to listings of securities, use of
proceeds and future exploration programs, 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. 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.
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