Nanika Resources Inc.

Nanika Resources Inc.

December 01, 2009 21:09 ET

Nanika Announces Further Financing in Response to Demand

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Nanika Resources Inc. (TSX VENTURE:NKA)(FRANKFURT:C7X) announces a non-brokered private placement, to raise gross proceeds of up to $500,000. The private placement will involve the sale of up to 5,000,000 non flow-through units at the price of $0.08 per unit and the sale of up to 987,654 flow-through units at the price of $0.10125 per unit.

The non flow-through units will be comprised of one non flow-through share and one warrant. The flow-through units will be comprised of one flow-through share and one warrant.

All warrants may be exercised to purchase one additional non-flow-through common share at a price of 12 cents per common share in the first twelve months and 14 cents in the subsequent twelve months.

Units will be offered to qualified purchasers in reliance upon exemptions from prospectus and registration requirements of applicable securities legislation. Proceeds from the sale of the flow-through share portion of each unit will be used to incur expenditures which qualify as Canadian exploration expenses and will be spent primarily on the corporation's projects located in British Columbia which include among others: the Indi, Indi South, Red Cliff East, Lucky Ship, Sweeney Lake and Ted properties. Insiders of the corporation may participate in the offering.

The offering is subject to acceptance by the TSX Venture Exchange.

The company will pay a finder's fee equal to 10 per cent of the gross proceeds realized from the sales made to purchasers referred to the corporation by a finder, payable in either cash or units or both, at the sole discretion of the corporation. The warrant will have the same terms as the warrants forming the private placement.

Securities issued in this private placement will be subject to a hold period of four months and a day from the date of issuance of the securities.

Nanika is announcing this financing in response to further demand. The President and CEO, James Jacuta stated that, "I am very happy that there is such good support at the current time for Nanika's activities. It will allow Nanika to plan further exploration and drilling programs as well as looking at new property acquisitions".

About Nanika Resources Inc.

Nanika Resources Inc. is a TSX Venture listed mineral exploration and development company focusing on the advancement of its mineral properties, all of which are located within Canada.

On Behalf of the Board

James D. Jacuta, Chairman, President and CEO.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nanika Resources Inc.
    Matthew Emery
    604-638-0699 or Toll Free: 1-866-580-0699
    Nanika Resources Inc.
    Douglas Kerr
    604-638-0699 or Toll Free: 1-866-580-0699