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