Kivalliq
Energy Announces $10 Million Bought Private Placement
Kivalliq Energy Corporation (the �Company�)
(TSX VENTURE:KIV) is pleased to announce that it has entered into an agreement with
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�) under which the Underwriters have agreed to purchase, on a
bought deal private placement basis, 13,000,000 flow-through common shares (the
�Flow-Through Shares�) at a price per Flow-Through Share of $0.50 and 7,780,000
common shares (the �Common Shares�) at a price per Common Share of $0.45
(together, the �Offered Securities�) for total gross proceeds of $10,001,000
(the �Offering�). The Underwriters have been granted the option (the �Option�)
to purchase up to an additional $2,000,000 of the Offering in any combination
of Flow-Through Shares and/or Common Shares, exercisable in whole or in part at
any time up to 48 hours before the closing of the Offering (the �Closing
Date�).
In
connection with the Offering, the Underwriters will receive a cash commission
equal to 7.0% of the gross proceeds raised under the Offering (inclusive of the
Option) and that number of non-transferable broker warrants (�Broker Warrants�)
as is equal to 7.0% of the number of Offered Securities sold (inclusive of the
Option). Notwithstanding the foregoing, for certain subscribers
introduced by the Company (the "President's List"), the Underwriters
will receive a cash commission equal to 1.0% of the gross proceeds raised and
that number of Broker Warrants equal to 1.0% of the Common Shares sold pursuant
to the President's List. The Company may pay finder's fees in connection
with the President's List. Each Broker Warrant will be exercisable into
one Common Share of the Company, for a period of 24 months from the Closing
Date at a price of $0.45 per Common Share.
Closing
of the Offering is scheduled for on or about May 29, 2012. All securities
issued will be subject to a statutory four month hold period. The Offering is
subject to a number of conditions, including, without limitation, receipt of
all regulatory approvals.
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. The Company 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 RC and Diamond drilling.
On
behalf of the Board of Directors
James R. Paterson, CEO