NOR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, BC, February 1, 2016 -- Roughrider Exploration Limited (TSX-V: REL) ("Roughrider") and Kivalliq Energy Corporation (TSX-V: KIV) ("Kivalliq") -- today announce commencement of a 1,677 line-kilometre fixed-wing FALCON airborne gravity gradiometer survey on the Genesis uranium property in northeastern Saskatchewan. CGG Canada Services Ltd. has been contracted to do the survey and in3D Geoscience Inc. will provide independent review of the data.
The FALCON gravity gradiometer survey will be divided into five separate grids providing coverage over the Jurgen, Kingston, Johnston/GAP, Daniel's Bay and Melnick priority target areas. Flight lines will be flown at 200 metre spacing and the survey will also include magnetic and terrain data collection. Gravity low responses potentially represent alteration associated with uranium mineralization. The survey is expected to be completed in early February, with final deliverables expected in March.
David Tupper, VP Exploration, explains "this FALCON gravity gradiometer survey is the next logical step to provide focus to the ongoing exploration of this large land package. We will be looking closely for gravity lows that are coincident along the numerous electromagnetic conductor trends already identified at Jurgen, Kingston, Johnston/GAP, Daniels Bay and Melnick."
Exploration conducted on the Genesis Property during 2014 and 2015 has successfully demonstrated the existence of numerous high-priority targets for basement hosted uranium in the previously under-explored terrain to the northeast of the Athabasca Basin. Roughrider and Kivalliq plan to continue refining and upgrading existing targets while still seeking new ones throughout this large landholding.
The Company is also pleased to announce that it has completed a non-brokered private placement (the "Private Placement") consisting of 1,437,500 flow-through units (the "FT Units"), and 1,035,147 non flow-through units (the "Non-FT Units"), for gross proceeds of $187,460. Each FT Unit was issued at a price of $0.08 per FT Unit and is comprised of one flow-through common share and one-half of one non-flow-through warrant (a "Warrant"). Each Non-FT Unit was issued at a price of $0.07 per Non-FT Unit and is comprised of one non-flow-through common share and one full Warrant. The Warrants that form part of the FT Units and the Non-FT units have materially identical terms. Each whole Warrant entitles the holder to purchase one non flow-through common share at a price of $0.12 per share for a period of two years after the date of issuance. As a result, 718,750 of the Warrants are exercisable until December 31, 2017, and the remaining 1,035,147 Warrants are exercisable until February 1, 2018.
In connection with the closing of the Private Placement, the Company has paid finder's fees totaling $8,400 and issued an aggregate of 110,357 finder's warrants (the "Finder's Warrants") to certain arm's length parties. Each Finder's Warrant has the same key terms as the Warrants. 67,500 of the Finder's Warrants are exercisable until December 31, 2017, and the remaining 42,857 Finder's Warrants are exercisable until February 1, 2018. The proceeds of the Private Placement will be used for exploration on the Genesis Property and on Roughrider's 100%-owned Athabasca Properties as well as for general working capital purposes.
All of the securities issued under the Private Placement are subject to a hold period expiring four months and one day from the date of issuance. Shares issued pursuant to the FT Units were issued December 31, 2015 and may not be traded until May 1, 2016. Shares issued pursuant to the Non-FT Units were issued on February 1, 2016 and may not be traded until June 2, 2016.
Roughrider also announces that that it has granted 250,000 incentive stock options to a director of the company. The options are exercisable at $0.12 until February 1, 2021, are subject to the terms of the Company's stock option plan, and are valid only upon the approval of the TSX Venture Exchange.
David W. Tupper, P.Geo., V.P. of Exploration and a Qualified Person under National Instrument 43-101 has reviewed and approved the technical information contained in this release.
About Roughrider Exploration Limited
Roughrider's focus is exploring the 200,677 hectare (495,883 acre) Genesis uranium project located in the Wollaston-Mudjatik geological trend extending northeast from Saskatchewan's Athabasca Basin. Roughrider has the option to earn an 85% interest in Genesis from Kivalliq Energy Corporation.
For further information, please contact:
Chief Executive Officer
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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.
UNITED STATES ADVISORY
The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), have been offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must not be conducted unless in accordance with the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.