Atikwa Resources Inc.

Atikwa Resources Inc.

September 12, 2011 13:06 ET

Atikwa Announces Closing of Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Sept. 12, 2011) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce that it has closed its previously announced private placement financing consisting of the issuance of flow-through units ("Flow-Through Units") and units ("Units") by the Company for aggregate gross proceeds of approximately $2,803,000.00 (the "Offering"). Pursuant to the Offering, Atikwa issued 35,708,428 Flow-Through Units at a purchase price of $0.07 per Flow-Through Unit and 5,053,331 Units at a purchase price of $0.06 per Unit.

Each Flow-Through Unit is comprised of one common share in the capital of the Company (a "Common Share") issued on a "flow-through" share basis pursuant to the provisions of the Income Tax Act (Canada) and one-half of one Common Share purchase warrant (a "Warrant") at a Flow-Through Unit price of $0.07. Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.10 per Warrant at any time on or before 4:30 p.m. (Calgary time) on September 8, 2012. Each Unit is comprised of one Common Share and one Warrant for a Unit price of $0.06. Following the closing of the Offering, Atikwa has 286,784,582 Common Shares issued and outstanding. All of the securities issued pursuant to the Offering will be subject to a hold period expiring on January 9, 2012.

MGI Securities Inc. acted as agent for the Offering and, along with certain other selling group members, received a commission equal to 7% of the gross proceeds from the Offering and 2,853,323 broker warrants ("Broker Warrants"), each Broker Warrant entitling the holder to purchase one Common Share at $0.10 per Common Share until September 8, 2012.

The net proceeds from the Offering will be used to fund further development drilling at the Company's light oil Spearfish play in the Pierson area of Manitoba and its light oil Bakken play in Roncott, Saskatchewan as well as the Company's next phase of drilling at the Company's liquids rich natural gas discovery in the Porcupine Hills of Alberta and further development of the Company's Windfall, Alberta property.

This news release contains forward‐looking statements relating to the use of proceeds from the Offering and 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. 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 securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and, until, so registered, may not be offered or sold in the United States or any state or to, for the account of, U.S. persons absent registration or an applicable exemption from the registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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