Kivalliq
Energy Closes $11.5 Million Bought Private Placement
Kivalliq Energy Corporation (�Kivalliq�)
(TSX-V:KIV) today announced the closing of the bought
deal private placement previously announced on May 7. Dundee Securities Ltd.
(the �Lead Underwriter�), on behalf of a syndicate of Underwriters including Versant
Partners Inc., Canaccord Genuity
Corp. and National Bank Financial Inc. (the �Underwriters�), sold 16,772,900
flow-through common shares (the �Flow-Through Shares�) at a price per
Flow-Through Share of $0.50 and 7,124,000 common shares (the �Common Shares�)
at a price per Common Share of $0.45 (together, the �Offered Securities�) for
total gross proceeds of $11,592,250 (the �Offering�). As part of the Offering,
the Underwriters exercised their option (the �Option�) to purchase a portion of
an additional $2,000,000 of the Offering in any combination of Flow-Through
Shares and/or Common Shares.
In connection with the Offering, the Underwriters received a $685,908 cash
commission and 1,393,783 non-transferable broker warrants (�Broker Warrants�).
Each Broker Warrant will be exercisable into one Common Share of Kivalliq, for a period of 24 months from the Closing Date
at a price of $0.45 per Common Share.
All securities issued will be subject to a statutory 4 month hold period,
ending on September 30, 2012. The Offering is subject to a number of
conditions, including, without limitation, receipt of all regulatory approvals.
With respect to the Offering, Kivalliq will pay
Dundee Securities a CDN$20,000 advisory fee.
The gross proceeds from the Flow-Through Shares will be used for Canadian
Exploration Expenses (within the meaning of the Income Tax Act (Canada)),
related to the Issuer�s exploration projects. Kivalliq
has agreed to renounce such Canadian Exploration Expenses with an effective
date of no later than December 31, 2012. The net proceeds from the sale of the
Common Shares will be used for general corporate purposes.
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 252,830 acre Angilak
Property 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 reverse circulation and Diamond core drilling.
On behalf
of the Board of Directors
James R. Paterson, CEO
Kivalliq Energy Corporation