Niko Resources Ltd.

Niko Resources Ltd.

December 04, 2012 09:17 ET

Niko Resources Ltd. Announces Successful Closings of Cdn$252 million of Offerings of Common Shares and Convertible Senior Unsecured Notes

CALGARY, ALBERTA--(Marketwire - Dec. 4, 2012) -


Niko Resources Ltd. ("Niko" or the "Company") (TSX:NKO) is pleased to announce today the successful closing of its previously announced public offering of (i) 12,000,000 common shares of the Company at Cdn$8.50 per common share for gross proceeds of Cdn$102 million and (ii) Cdn$100 million principal amount of convertible senior unsecured notes (the "Notes") at a price of Cdn$1,000 per Note for aggregate gross proceeds of Cdn$202 million (collectively, the "Offering"), through a syndicate of underwriters (the "Underwriters") led by RBC Capital Markets. The Company has granted the Underwriters an over-allotment option to purchase up to an additional 1,800,000 common shares and Cdn$15 million principal amount of Notes on the same terms and conditions as the Offering, exercisable in whole or in part, from time to time until January 3, 2013.

In addition, Niko has successfully closed its previously announced separate concurrent offering (the "Concurrent Offering") of 5,882,350 common shares at Cdn$8.50 per common share for approximately Cdn$50 million to Maju Investments (Mauritius) Pte. Ltd., the primary holder of the Company's outstanding Cdn$310 million of convertible debentures due December 30, 2012 (the "Outstanding Debentures").

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 at par plus accrued interest. Repayment of the Outstanding Debentures is scheduled to occur on December 5, 2012.

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.

December 4, 2012

Forward-Looking Information

Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward looking information relating to the timing of repayment of the Outstanding Debentures. These forward looking statements are based on certain key expectations and assumptions, including the timing for receipt of funds by the holders of the Outstanding Debentures and receipt by, or release to, Niko of the certificates representing the Outstanding Debentures. The reader is cautioned that the assumptions used in the preparation of such forward looking information, although considered reasonable at the time of preparation, may prove to be incorrect. The actual timing of repayment of the Outstanding Debentures may be delayed by factors outside of the control of Niko, including delays in the processing of international wire transfers. 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.

Contact Information

  • Niko Resources Ltd.
    Edward Sampson
    Chairman of the Board, President & CEO
    (403) 262-1020

    Niko Resources Ltd.
    Murray Hesje
    VP Finance & CFO
    (403) 262-1020