Kivalliq Energy Closes CDN$9.47 Million Non-Brokered Financing
Kivalliq Energy Corporation (TSXV:KIV)
(the "Company" or "Kivalliq") today announced the closing of the non-brokered
private placement financing previously announced on January 30, 2012. The
Company has raised gross proceeds of CDN $9,472,350.
The Company raised the funds by issuing 19,972,444
common shares (the "Offering"), including 13,047,444 common shares at
the price of CAD$0.45 per share and 6,925,000 common shares on a
"flow-through" basis, pursuant to the Income Tax Act (Canada) (the
"Flow-Through Shares"), at a price of CAD$0.52 per Flow-Through
Share.
Net proceeds of the Offering will be used to explore Kivalliq's high-grade Lac Cinquante
uranium deposit, located within the Angilak Property
in Nunavut Territory, Canada, and for general working capital purposes.
The securities issued by Kivalliq
in connection with the Offering are subject to a four month "hold
period" as prescribed by the TSX Venture Exchange and applicable
securities laws. Insiders of the Company purchased 4,600,000 shares in the
Offering. In aggregate, the Offering was subject to the following finders'
fees: $ 303,254 cash commission, 167,983 finders
warrants with a strike price of $0.50, and 133,470 finders warrants with a
strike price of $0.55.
The Offering is being made pursuant to prospectus
exemptions in all provinces of Canada and in other jurisdictions as may be
determined by the Company. The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale of
the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation is a uranium exploration
and development company, and the first company to sign
a comprehensive agreement to explore for uranium on Inuit Owned Lands in
Canada's Nunavut Territory.
Kivalliq's 227,000 acre Angilak Property in Nunavut
hosts the high-grade Lac Cinquante deposit, along with multiple highly
mineralized target areas. With an NI 43-101 Inferred Mineral Resource of
1,779,000 tonnes grading 0.69% U3O8, totalling 27.13 million pounds U3O8, (15.2
pounds 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.
Since acquiring the Angilak Property in 2008, Kivalliq
has invested approximately $30 million conducting systematic exploration,
including ground and airborne geophysics, geological mapping, prospecting and
approximately 48,000 meters of RC and diamond drilling.
On behalf of the Board of Directors
"Jim Paterson"