Atikwa Resources Inc.
TSX VENTURE : ATK

January 22, 2010 14:13 ET

Atikwa Resources Inc. Announces Final Closing of Equity Financing

CALGARY, ALBERTA--(Marketwire - Jan. 22, 2010) -

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) is pleased to announce that the final closing of its previously announced non-brokered equity financing (the "Equity Financing") was completed on January 20, 2010. The Equity Financing was fully subscribed and a total of 83,333,334 common shares of the Company were sold in two closings (14,256,670 common shares in the initial closing on December 24, 2009 and 69,076,664 common shares in the final closing) at a price of $0.06 per common share. The gross proceeds raised in the closings of the Equity Financing were $5,000,000. Net proceeds from the Equity Financing 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 Equity Financing will be subject to a four month hold period, which will expire on April 25, 2010 and May 21, 2010, respectively. In connection with the Equity Financing, the Company agreed to pay sales commissions or finder's fees equal to 8%, in aggregate, of the gross proceeds.

CEO Sean Kehoe stated, "The completion of these financings is another fundamental milestone for Atikwa. Our team has taken the Company's three significant resource plays from original concept through to land negotiation and acquisition. The final step, securing the capital to drill and validate these projects, fell to our shareholders and they have definitely stepped up to do their share of the lifting. Our recent non brokered equity financing was significantly over subscribed and our shareholders have continued to strongly support us in the Market. The Company now has sufficient capital to test and validate all three projects, improve our interests in these areas, and in addition, potentially add a fourth opportunity which we hope to announce in the coming weeks."

The completion of the Equity Financing together with the Company's previous flow-through financings provided approximately $8,500,000.00 (net of sale commissions) for Atikwa's upcoming drilling programs. Following these offerings, Atikwa now has 202,111,519 common shares issued and outstanding.

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