Kivalliq Announces CDN $5 million Private Placement; Lumina Capital Increases Investment
December 3, 2010
Kivalliq Energy Corporation (TSX-V: KIV) ("Kivalliq" or the "Company") today announced that Lumina Capital Limited Partnership ("Lumina Capital") together with certain other strategic investors, will subscribe for a total of CDN$5 million in a non brokered private placement in Kivalliq consisting of $4.5 million flow-through common shares of the Company (“Shares”) and $500,000 non-flow-through Shares (the “Private Placement”). The proceeds from this financing will be used to explore and develop Kivalliq’s high-grade Lac Cinquante uranium deposit and other prospects located within the Angilak Project in Nunavut, Canada, and for general working capital purposes.
“We thank our financial partners for their commitment to the Company,” stated Jim Paterson, Kivalliq’s CEO. “From their initial investment in the first quarter of 2010 they have continued to be highly supportive of our efforts to deliver the first NI 43-101 mineral resource at the Angilak Property by Q1 of 2011.”
The financing will consist of 7.1 million Shares, at a price of $0.70 per Share. A finder’s fee will be payable on a portion of the Placement. Directors and Officers of the Company may be participating in the Private Placement. The financing is subject to regulatory approval and the securities will be subject to a four month resale restriction.
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 Territory, Canada.
Kivalliq’s core asset, the 225,000 acre Angilak Project, is comprised of the historic Lac Cinquante uranium deposit (not National Instrument 43-101 compliant)** and over 150 other uranium occurrences. Since acquiring the project in 2008, the Company has spent approximately $11.9 million on the property conducting systematic exploration which has included ground and airborne geophysics, geological mapping and drilling.
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.
This news release is not for distribution to United States news wire services or for dissemination in the United States.
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.
** The quoted disclosure of historical resource estimates for the Lac Cinquante Uranium Deposit was prepared by Aberford Resources Ltd in 1982, Abermin Corporation in 1986, and referenced by other subsequent sources. It was prepared prior to the implementation of National Instrument 43-101 (NI 43-101) and should not be relied upon since it does not comply with NI 43-101 Standards of Disclosure for Mineral Projects. A Qualified Person has not classified the historical estimates as current mineral resources or reserves, and therefore, Kivalliq is not treating them as such. Kivalliq has not completed any work to verify these estimates, but ongoing exploration programs are designed to evaluate the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being classified a mineral resource or reserve. However, the historical uranium resource estimate 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. Historic estimates were originally classified as “indicated” and “inferred” reserves, plus a third “possible” category; however, the equivalent categories acceptable under NI 43-101 are not known at this time.
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.