KNICK EXPLORATION INC. COMPLETES $617,252 PRIVATE PLACEMENT WITH NORTHERN SECURITIES
- Additional closing may be in held in July 2010
Val d'Or, Québec, Canada ‑ July 9, 2010 ‑ Knick Exploration Inc. (TSX-V: KNX) is pleased to announce that it has held a first closing of its previously-announced private placement with Northern Securities Inc. by issuing 781,819 units at a price of $0.22 per unit and 1,649,083 "flow-through" units at a price of $0.27 per unit, for aggregate gross proceeds to Knick of $617,252.
Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of Knick at a price of $0.30 for a period of 36 months following the closing date.
Each "flow-through" unit consists of one "flow-through" common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of Knick at a price of $0.35 for a period of 24 months following the closing date.
Knick will use the proceeds from the placement of "flow-through" units to incur Canadian Exploration Expenses on its East-West mining property located in the Province of Québec and will use the net proceeds from the placement of the units for working capital and for general corporate purposes.
As consideration for acting as agent, Knick paid Northern Securities Inc. a cash commission of $61,725.26, representing ten percent (10%) of the gross proceeds from the private placement and issued compensation options to Northern Securities Inc., entitling it to purchase: (i) 62,546 Units at a price of $0.22 per unit until July 9, 2012; and (ii) 93,409 "flow-through" units at a price of $0.27 per unit until July 9, 2012, representing eight percent (8%) of the aggregate number of units and "flow-through" units sold by Northern Securities Inc. Knick also issue a compensation option to an other dealer located in Toronto, Ontario, entitling it to purchase 38,518 "flow-through" units at a price of $0.27 per unit until July 9, 2012, The units and "flow-through" units to be comprised in the compensation options will have the same terms and conditions as the units to be issued in the private placement.
All the foregoing securities, including those to Northern Securities Inc. and the other dealer, are subject to a hold expiring on November 10, 2010
Following the closing iof the first tranche of the private placement, there are a total of 18,289,048 common shares of Knick issued and outstanding.
FOR MORE INFORMATION, PLEASE CONTACT:
Jacques Brunelle
President & CEO
Gordon N. Henriksen
Vice President
Knick Exploration Inc.
536 3rd Avenue
Val-d'Or, Quebec
J9P 1S4
Tel: 819-874-5252
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been 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 within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release is not for distribution to United States newswire services or for dissemination in the United States.
Neither 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.
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