VANCOUVER, BC--(Marketwired - June 21, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Kivalliq Energy Corporation (TSX VENTURE: KIV) ("Kivalliq") today announced plans for summer exploration at the Company's Angilak Property in Nunavut Territory and a non-brokered private placement financing to raise gross proceeds of CDN$400,000, to fund mineral exploration at Kivalliq's wholly-owned properties in Canada.
"We are excited to kick-off the first program designed to determine the scope and setting of exceptional gold, silver and PGM results reported from the Yat area since 2007," stated Jeff Ward, Kivalliq's President. "Prospecting at Yat in 2015 included one grab sample of 211 g/t gold, 80,900 g/t silver, 1.82% U3O8, 6.8% copper, 3.1 g/t platinum and 6.7 g/t palladium, which are very compelling results to follow up this season."
Yat Target, Angilak Property (Nunavut Territory, Canada)
A $500,000 summer exploration program is planned at the Angilak Property in Nunavut Territory. The 2016 program will begin in early July by mobilizing staff and supplies to the existing Nutaaq camp. Kivalliq plans to carry out trenching, geological mapping, sampling and geochemical surveying at the Yat target, in addition to geochemical surveying along geophysical conductors in the vicinity of the Dipole uranium discovery (see Kivalliq news release October 19, 2015).
The Yat occurrence is located 16 km southwest of the Lac 50 uranium resource and 10 km northeast of the new Dipole discovery, near the northern margin of the Angikuni Basin. Kivalliq staff visited the area in 2015 to investigate high-grade polymetallic mineralization and visible gold (VG) periodically noted during previous Kivalliq prospecting programs. One of three boulder grab samples collected in 2015 returned the highest precious metal assays ever reported from the Angilak Property: 211 g/t Au, 80,900 g/t Ag, 1.82% U3O8, 6.8% Cu, 3.1 g/t Pt and 6.7 g/t Pd. A grab sample in 2007 returned 31.9 g/t Au, 1170 g/t Ag, 1.18% Cu and 0.25% U3O8 from historic trenches. Follow-up samples in 2010 confirmed these results with 12.90 g/t Au, 1140 g/t Ag and 1.44% U3O8 (See news release November 10, 2015).
Locally, the Yat area comprises a 100 m long group of sulphide-bearing radioactive subcrops and historic pits in conglomerate and sandstone. It is characterized by a discreet 250 m wide magnetic low having coincident high-grade Au-Ag-U-Cu-(Pt-Pd) mineralization, occurring with quartz-carbonate breccia and veins in hydrothermally altered host rock. Historic work in the late 1970's and early 1980's included U-Cu-Mo-Ag-Pb soil surveys, trenching and four drill holes. There is no record of historic rock analysis for Au, Ag, or platinum group metals (PGM). Uranium work by Kivalliq since 2007 has included airborne geophysics, prospecting, ground gravity, Mag-VLF surveys, and four shallow reverse circulation holes in 2011. To view compilation images for the Yat Target area please visit: http://kivalliqenergy.com/uranium/angilak/maps/
Kivalliq also today announced a non-brokered private placement financing to raise gross proceeds of CDN$400,000, to fund mineral exploration at Kivalliq's wholly-owned Angilak and Hatchet Lake Properties in Canada. Kivalliq intends to raise the funds by issuing up to 4,000,000 units ("Units"), at the price of CDN$0.10 per Unit (the "Offering"). Each Unit consists of one common share issued on a "flow-through basis" (a "FT Share") pursuant to the Income Tax Act (Canada) and one-half of one non-flow-through common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable into a non-flow-through common share of Kivalliq (a "Warrant Share") for a period of 24 months from the Closing Date at an exercise price of $0.15 per Warrant Share.
The Warrants will be subject to an acceleration clause, whereby, if the weighted average trading price of Kivalliq's shares on the TSX Venture Exchange (the "Exchange") is at a price equal to or greater than $0.30 for a period of 20 consecutive trading days, Kivalliq will have the right to accelerate the expiry date of the Warrants. Kivalliq will give written notice to the holders of the Warrants that the Warrants will expire within 30 days of the date of notice to the Warrant holders. Such notice by Kivalliq to the holders of the Warrants may not be given until 4 months and one day after the Closing Date.
Kivalliq will use the net proceeds of the Offering for eligible exploration expenditures, which will constitute "Canadian Exploration Expenses" ("CEE") that are "Flow-Through mining expenditures", as defined in the Income Tax Act which can be renounced to purchasers of the FT Shares for the 2016 taxation year in the aggregate amount of not less than the total amount of the gross proceeds raised from the Offering. The CEE shall be incurred no later than December 31, 2017.
Closing of the Offering is anticipated to occur on or about July 5, 2016 and is subject to receipt of applicable regulatory approvals, including the Exchange. The securities issued by Kivalliq in connection with the Offering are subject to a four month "hold period" as prescribed by the Exchange and applicable securities laws. A portion of the Offering may be subject to finders' fees. Insiders of the Company may subscribe to a portion of the financing.
The Offering is being made pursuant to prospectus exemptions in all provinces of Canada and in other jurisdictions as may be determined by Kivalliq. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Jeff Ward, P.Geo., President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the scientific and technical information contained in this release.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX VENTURE: KIV) is a Vancouver-based company with a portfolio of high-quality uranium exploration projects in Canada. Kivalliq holds Canada's highest-grade uranium resource outside of Saskatchewan. The Company's flagship project, the 101,111 hectare Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq's comprehensive exploration programs continue to demonstrate the "District Scale" potential of the Angilak Property. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposits, please refer to Kivalliq's news release of March 1, 2013.
In Saskatchewan, Kivalliq holds a 100% interest in the recently acquired 13,711 hectare Hatchet Lake Property adjacent to the north-eastern margin of the highly prolific uranium-producing Athabasca Basin. Compilation of results from previous exploration by Hathor Exploration Limited and Rio Tinto have identified multiple, priority unconformity-related basement targets at Hatchet Lake that were followed up in 2015.
Kivalliq also holds a 100% interest in the 200,677 hectare Genesis Property located northeast of Saskatchewan's Athabasca Basin, with Roughrider Exploration Limited funding the current exploration program pursuant to an option to acquire up to an 85% interest in the property. This highly prospective project is located along the Wollaston-Mudjatik trend and extends 90 km northeast from Wollaston Lake to the Manitoba border.
Kivalliq's team of northern exploration specialists has forged strong relationships with sophisticated resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. (NTI). Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.
On behalf of the Board of Directors
James R. Paterson, CEO
Kivalliq Energy Corporation
For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com.
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.
Certain disclosures in this release constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq's operations as a mineral exploration company 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. Other than as required by applicable securities legislation, Kivalliq 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.