Kivalliq Announces Closing of Non-Brokered Private Placement
August 26, 2009
Vancouver, B.C. – Kivalliq Energy Corporation (KIV: TSX-V) (“Kivalliq” or “the Company”) today announced that, further to the Company's news release issued on August 7th, 2009, it has closed a non-brokered private placement (“Offering”) and has received approval by the TSX Venture Exchange. Kivalliq issued 2,000,000 flow-through units, at a price of $0.25 per unit, to raise proceeds of $500,000 CDN. Each unit consists of one flow-through common share and one-half of one transferable, non-flow-through common share purchase warrant. Each full warrant entitles the holder to purchase one additional share of the Company, for a period of two years, at a price of $0.35 per share during the first year and $0.65 per share during the second year, expiring August 20, 2011, subject to acceleration clause whereby if the Company shares trade at $0.10 above the appropriate exercise price the Company may accelerate the expiry time to thirty calendar days from the date express written notice is provided by the Company to the holder. Finder fees including compensation options were paid on the Offering. Proceeds will be used to fund the first phase of the 2009 Exploration Program on the Angilak Project.
All of the shares and any shares issued upon exercise of the units and the units comprising the compensation option are subject to a hold period and may not be traded in Canada until December 21, 2009, except as permitted by applicable Canadian securities laws and the TSX Venture Exchange.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.
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, northern Canada’s highest grade uranium deposit. Reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% U3O8 (not National Instrument 43-101 compliant), the historic Lac Cinquante uranium deposit and over 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.