Kaminak Gold Corporation

Kaminak Gold Corporation

July 04, 2008 13:01 ET

Kaminak Closes Spin-out of Kivalliq Energy Corporation and Shareholders to Receive Kivalliq Units

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 4, 2008) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that the spin-out of Kivalliq Energy Corporation has been completed. As a result, Kaminak shareholders of record on July 4th, 2008 with the registrar and transfer agent of Kaminak have been issued 0.8 common shares of Kivalliq and 0.5 share purchase warrants of Kivalliq for every two common shares of Kaminak held. Each whole Kivalliq warrant will be exercisable at a price of $0.25 per Kivalliq share for a period of 30 days commencing on July 4th, 2008. Trading in Kivalliq shares is expected to commence on Monday, July 7th, 2008 on the TSX Venture Exchange at market open under the trading symbol "KIV".

"Completing the Kivalliq transaction in less than six months represents a major milestone in Kaminak's long term growth. As part of the spin-out transaction, not only do Kaminak shareholders receive Kivalliq units, but Kaminak itself retains approximately 3.6 million shares in Kivalliq," stated Rob Carpenter, Kaminak's President & CEO. "Kaminak will continue to create shareholder value as a prospect generator and search for additional market friendly resource opportunities. Our strong cash position of approximately $5 million and continued tight corporate structure positions us well for the future."

Kaminak owns and controls 3,646,753 common shares of Kivalliq, representing approximately 12.6% of the issued common shares of Kivalliq. The shares were acquired by Kaminak prior to the completion of the spinout transaction, primarily in consideration for the assignment of Kaminak's uranium property interests to Kivalliq. Kaminak may in the future increase or decrease its ownership of securities of Kivalliq. A copy of a report filed by Kaminak on the SEDAR website at www.sedar.com pursuant to applicable securities legislation may be obtained by contacting Robert Carpenter, the President of Kaminak, at 604-646-4527.

In connection with the arrangement, Kivalliq became a reporting issuer in British Columbia and Alberta. The financial year end of Kivalliq has been set at September 30th, 2008. Kivalliq anticipates filing on SEDAR unaudited - management prepared financial statements for the period ending June 30th, 2008. The first interims to be filed for Kivalliq will be for March 31st, 2008. The first annual audited financial statements of Kivalliq will be for the fiscal year ending September 30th, 2008, thereafter, unaudited - management prepared quarterly reports will be filed for the quarters ending December 31st, 2008, March 31st, 2009 and June 30th, 2009.

About Kaminak

Kaminak Gold Corporation is an opportunity focused prospect generator. Kaminak's technical strength and entrepreneurial drive is complemented by a proven, successful business model designed to create shareholder value. Kaminak's business model employs a joint venture strategy that exposes Kaminak shareholders to multiple opportunities for discovery. Kaminak projects offer world-class exploration potential and present exposure to strategic commodities, including gold, uranium and nickel.

On behalf of the Board of Directors of Kaminak

Rob Carpenter, Ph.D., P. Geo., President and CEO

Kaminak Gold Corporation

For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com.

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.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's and Kivalliq's operations as mineral exploration companies that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Kaminak Gold Corporation
    Tony Reda
    Investor Relations
    (604) 646-4534 or Toll Free: 1-888-331-2269
    Website: www.kaminak.com