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Kivalliq Energy Announces CAD$17.8 Million Financing

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gsfl   Monday, 03/07/11 10:45:35 AM
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Kivalliq Energy Announces CAD$17.8 Million Financing
Mar. 7, 2011 (Canada NewsWire Group) --
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, March 7 /CNW/ - Kivalliq Energy Corporation (TSXV:KIV) ("Kivalliq" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc. and Versant Partners Inc. (the "Underwriters") to sell 11,120,000 common shares of the Company issuable on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of CAD$0.90 per Flow-Through Share to raise CAD$10,008,000, on a bought deal private placement basis (the "Underwritten Offering"). The Company has granted the Underwriters an over-allotment option, exercisable prior to the closing of the Underwritten Offering, to purchase up to 2,780,000 additional Flow-Through Shares at the issue price of the Offering, for additional proceeds of up to CAD$2,502,000 (the "Over-Allotment Option", and together with the Underwritten Offering, the "Offering").

In addition, the Company plans to undertake a non-brokered private placement financing for up to 10,000,000 common shares at $0.78 per share (the "Non-Brokered Private Placement"). Insiders of the Company may participate in the Non-Brokered Private Placement and a portion of the Non-Brokered Private Placement may be subject to finders' fees.

The Underwriters will receive a cash commission on the sale of the Flow-Through Shares equal to 6% of the gross proceeds raised and broker warrants ("Broker Warrants") equal to 3% of the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at a price of CAD$0.90 at any time up to 24 months after closing.

The Company intends to use the net proceeds of the Offering and the Non-Brokered Private Placement 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.

Closing of the Offering and the Non-Brokered Private Placement are each anticipated to occur on or about March 24, 2011 and are subject to receipt of applicable regulatory approvals. The securities issued by Kivalliq in connection with the Offering and the Non-Brokered Private Placement are subject to a four month "hold period" as prescribed by the TSX Venture Exchange and applicable securities laws.

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.

It's all happened before and it will all happen again. Might as well profit from it.
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