Atikwa Resources Inc.

March 10, 2011 13:34 ET

Atikwa Closes Previously Announced Private Placement

CALGARY, ALBERTA--(Marketwire - March 10, 2011) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce the final closing of its previously announced private placement (the "Offering"). The Offering was fully subscribed and the Company fully exercised its over-allotment option due to market demand. A total of 27,934,540 units ("Units") of the Company were sold in two closings: 15,599,770 Units in the initial closing on February 23, 2011 and 12,334,770 Units in the final closing on February 28, 2011, at a price of $0.065 per Unit. The gross proceeds raised in the closings of the Offering were $1,815,745.10. Net proceeds will be used to fund development drilling in the Company's two core light oil resource plays, to pursue potential land and corporate acquisitions, and for general corporate purposes.

All securities issued pursuant to the Offering will be subject to a four month hold period, which will expire June 24, 2011 and June 29, 2011, respectively. In connection with the Offering, the Company agreed to pay sales commissions or finder's fees equal to 8%, in aggregate, of the gross proceeds.

Each Unit consists of one common share of the Company and one common share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to acquire one common share at an exercise price of $0.10 for a period of 12 months from closing (the "Expiry Date"). The term of the Warrants is subject to an acceleration clause. The Warrant will expire on the earlier of the Expiry Date and the date which is 30 calendar days after the Company provides notice to the holders of the Warrants that an acceleration event has occurred, provided that such notice may not be given prior to four months after the Closing.

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 in the United States.

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