Kivalliq Increases Non-Brokered Private Placement
May 12, 2009
Not for Dissemination in the United States
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (the “Corporation” or “Kivalliq”) wishes to announce an increase to the non-brokered private placement offering (“Offering”) previously announced on April 22, 2009. The Offering will now consist of 5,000,000 flow-through units (“FT Units”) at a price of $0.20 per unit, and 2, 500,000 non-flow-through units (“NFT Units”) at a price of $0.20 per unit, for total gross proceeds of $1,500,000 CDN.
Each FT Unit sold will consist of one (1.0) flow-through share and one half of one (0.5) non-flow-through common share purchase warrant. Each whole common share purchase warrant will be exercisable into one common share for a period of 24 months from closing at a price of $0.30 per share in the first 12 months and $0.60 per share in the subsequent 12 months.
Each NFT Unit sold will consist of one (1.0) common share and one (1.0) common share purchase warrant. Each whole common share purchase warrant will be exercisable into one common share for a period of 24 months from closing at a price of $0.30 per share in the first 12 months and $0.60 per share in the subsequent 12 months.
Both FT and NFT units issued are subject to a four month hold period from the Closing date.
The warrants will be subject to an acceleration clause, whereby, if the weighted average trading price of the Corporation’s shares on the Exchange is at a price greater than $0.10 above the strike price of a whole common share purchase warrant for a period of 10 consecutive trading days, the Corporation will have the right to accelerate the expiry date of the warrants. The Corporation will give written notice to the holders of the warrants that the warrants will expire within 30 days of the date notice provided by the Corporation to the warrant holders. Such notice by the Corporation to the holders of the warrants may not be given until 4 months and one day after the Closing.
The Offering is subject to certain conditions, including regulatory acceptance. Finder fees may be payable on portions of the Offering. Proceeds for the Offering will be used to fund the first phase of the 2009 Exploration Program on the Angilak Project and for general corporate purposes.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation is a new 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.
This landmark partnership with the Inuit gives Kivalliq a unique opportunity to explore and develop the Lac Cinquante deposit, one of Canada’s most attractive, high-grade, historical uranium deposits. Historic estimates at Lac Cinquante total 20.4 million pounds of uranium oxide grading in excess of 1%**. The Lac Cinquante Uranium Deposit and 150 other uranium occurrences on the property comprise Kivalliq’s core asset, the 270,000 acre Angilak Project.
Kivalliq Energy Corporation is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com.
On behalf of the Board of Directors
John Robins, P.Geo
President and 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 Tony Reda, Investor Relations, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at [email protected].
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.
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.
** The quoted disclosure for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd, Abermin Corporation and referenced by subsequent sources. It is a historical estimate as defined in National Instrument 43-101, but should not be relied upon since it does not comply with standards of disclosure required for reserves and resources stated therein. However, it 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. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kivalliq is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kivalliq has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.
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.