Atikwa Resources Inc.
TSX VENTURE : ATK

December 07, 2009 19:07 ET

Atikwa Resources Inc. Announces Proposed Flow-Through Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) announced today that its board of directors has approved a private placement to raise up to $5,000,000 (the "Offering"). Atikwa intends to privately place up to 66,666,667 units (each a "Unit") of the Company at a price of $0.075 per Unit. Each Unit will consist of one flow-through common share of the Company and one non-flow-through common share purchase warrant (the "Warrants"). Each Warrant will entitle the holder to acquire one common share at an exercise price of $0.10 for a period of 12 months from closing.

In connection with the Offering, the Company may pay sales commissions and corporate finance fees of up to 8% of aggregate gross proceeds. Atikwa reserves the right to over-allot the Offering by up to an additional 20% of Units for additional gross proceeds of up to $1,000,000.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. All securities issued pursuant to the Offering will be subject to a four month hold period.

The Company also wishes to confirm that the common shares and warrants issued pursuant to Atikwa's previously announced private placement with the MineralFields Group (including any securities issued on exercise of the warrants) are subject to a four month hold period that will expire April 1, 2010.

This news release contains forward‐looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward‐looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward‐looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements and you should not unduly rely on forward‐looking statements. The forward‐looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Contact Information

  • Atikwa Resources Inc.
    Sean Kehoe
    President and CEO
    (403) 233-6073