Niko Resources Ltd.
TSX : NKO

Niko Resources Ltd.

August 16, 2006 09:03 ET

Niko Announces Closing of Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 16, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Niko Resources Ltd. (TSX:NKO) is pleased to announce that it has closed the previously announced equity financing. At closing, a total of 2,000,000 common shares were issued at a price of $63.25 per common share for gross proceeds of $126.5 million.

Net proceeds from the issue will be used to fund the ongoing exploration and development activities of the Company and for general corporate purposes. A portion of the net proceeds may be used to satisfy indebtedness under the IFC facility.

The underwriting syndicate was led by Canaccord Capital Corporation and included FirstEnergy Capital Corp., Orion Securities Inc., Sprott Securities Inc., Wellington West Capital Markets Inc. and Maison Placements Canada Inc.

This news release is not for dissemination in the United States or to any United States news services. The common shares of Niko have not 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 in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by Niko at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries such as India and Bangladesh); the effect of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of Niko. There is no representation by Niko that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS RELEASE.

Contact Information

  • Niko Resources Ltd.
    Edward S. Sampson
    Chairman of the Board, President and CEO
    (403) 262-1020
    or
    Niko Resources Ltd.
    Murray Hesje
    Vice President, Finance
    (403) 262-1020
    www.nikoresources.com