Kivalliq
Closes $4.27 Million Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
March 31, 2011
Vancouver, British Columbia � Kivalliq Energy
Corporation (TSXV:KIV) (�Kivalliq� or the
�Company�)
today announced that it has closed the first 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 Company has issued an aggregate of 8,550,000 common
shares at a price of $0.50 per share for gross proceeds of $4,275,000.
The Company expects to
close the second and final tranche of this financing, 1,750,000 additional
shares for gross proceeds of $875,000, on or about Tuesday April 5, 2011
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. 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 Private Placement are subject to a
hold period which will expire four months and a day from the date of closing,
being August 1, 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�
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 info@kivalliqenergy.com.
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.
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