Chieftain Metals Closes Over-Allotment Option

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Jan. 5 /CNW/ - Further to Chieftain Metals Inc.'s ("Chieftain" or the "Company") (TSX: "CFB") recent initial public offering, Chieftain is pleased to report the Agents (as defined below) have exercised in full the over-allotment option previously granted to them, resulting in the issue of an additional 511,500 common shares of the Company at a price of $5.00 per common share for gross proceeds of $2,557,500. The Agents received a 6% cash commission and 30,690 broker warrants pursuant to the exercise of the over-allotment option. Each broker warrant entitles the holder to acquire one common share at a price of $5.00 per common share until expiry on December 22, 2011.

The over-allotment was previously granted to a syndicate of agents led by Wellington West Capital Markets Inc. and included Raymond James Ltd. and Haywood Securities Inc. (collectively, the "Agents"). 

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation of sale would be unlawful. These 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 U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of the securities in the United States may only be made by means of a prospectus containing detailed information about the Company and its management as well as financial statements.

About Chieftain Metals Inc.

Chieftain Metals Inc.'s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Polymetallic Project, in northwestern British Columbia, Canada. The Tulsequah Project consists of 38 mineral claims and Crown-grants covering approximately 14,220 hectares and covers two previously producing mines. For more information on the Tulsequah Project, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Company to vary or to be materially different from those expressed or implied by such forward looking statements, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's final prospectus dated December 16, 2010. Forward-looking statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs on reasonable terms and the availability of outside service providers to deliver services in a satisfactory and timely manner. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company; however, these factors and assumptions should be considered carefully by readers. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law.

SOURCE Chieftain Metals Inc.

For further information:

Victor Wyprysky
President & CEO
Telephone: (416) 644-6000 ext. 650
Email: vw@chieftainmetals.com

Profil de l'entreprise

Chieftain Metals Inc.

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