CALGARY, ALBERTA--(Marketwire - Nov. 16, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO) is pleased to announce that it has increased the size of the over-allotment option for its recently announced issue of convertible unsecured senior notes (the "Notes") to $15 million principal amount (from $10 million principal amount previously announced), and the option is exercisable in whole or in part at any time following closing for a period of 30 days. All other material terms remain the same.
Net proceeds of the Offering and the Concurrent Offering, along with cash on hand and advances under the Company's credit facility, will be used to repay the Outstanding Debentures in full. Subject to certain conditions, the Outstanding Debentures are expected to be prepaid at par plus accrued interest upon closing of the Offering.
Closings of the Offering and the Concurrent Offering are conditional on each other and are expected to occur on or about December 4, 2012. The closings are also subject to certain other conditions including, but not limited to, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Niko in the United States. The common shares and Notes described in this press release (and any common shares of Niko issued upon the conversion, redemption or maturity of the Notes) have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.
November 16, 2012
Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward looking information relating to the refinancing plan for the outstanding convertible debentures and the expected date for the closing of the Offering and the Concurrent Offering. These forward looking statements are based on certain key expectations and assumptions, including the intended use of proceeds of the Offering and the Concurrent Offering, the timely receipt of the customary approvals for the Offering and the Concurrent Offering from the securities regulators and Toronto Stock Exchange or other expectations regarding future events. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such factors include, but are not limited to: general economic, market and business conditions; decisions or approvals of regulatory or administrative bodies; risks and uncertainties associated with the debt and equity capital markets; and other factors, many of which are beyond our control. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.