Kivalliq Closes Final Tranche of $5 Million Non-Brokered Private Placement
April 5, 2011
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, British Columbia – Kivalliq Energy Corporation (TSXV:KIV) (“Kivalliq” or the “Company”) today announced that it has closed the final tranche of the private placement financing announced March 7, 2011 pursuant to the amended terms described in the Company’s news release dated March 23, 2011 (the “Non-Brokered Private Placement ”). The final tranche consisted of 1,750,000 additional shares for gross proceeds of $875,000. Pursuant to the Non-Brokered Private Placement, the Company has now issued an aggregate of 10,300,000 common shares at a price of $0.50 per share for gross proceeds of $5,150,000.
Insiders of the Company participated in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement was subject to finders’ fees (including all of the final tranche). On applicable gross proceeds, certain finders received a cash commission of 6% and warrants equal to 3%. Each warrant shall be exercisable to acquire one common share of the Company at an exercise price of $0.50 for a period of 24 months from closing. Securities issued under the final tranche of the Non-Brokered Private Placement are subject to a hold period which will expire four months and a day from the date of closing, being August 6, 2011.
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.
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.
With an NI 43-101 compliant Inferred Mineral Resource of 810,000 tonnes grading 0.79% U3O8 , totaling 14.15 million lbs U3O8 (17.5 lbs 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. Kivalliq’s flagship project, the 225,000 acre Angilak Property in Nunavut, hosts the high-grade Lac Cinquante deposit, along with nine additional high priority target areas. Since acquiring the Angilak Property in 2008, the Company has invested approximately $12 million conducting systematic exploration.
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.
On behalf of the Board of Directors
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 [email protected].
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.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds, future exploration programs and the completion of the financings, 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.