delay 15 minutes
May 1, 2012
KLONDIKE GOLD OPTIONS SE BRITISH COLUMBIA PROPERTY
Klondike Gold Corp. (TSX-V: KG)(the “Company”) is pleased to announce that it has entered into an option agreement with PJX Resources Inc. (“PJX”) The agreement allows PJX to obtain a 50% undivided interest to the Company’s Vine Project, located 11 kilometers southwest of Cranbrook, British Columbia. The Property encompasses 84 claims and covers an area of 6,301 hectares. Under the terms of the option PJX is committed to spending a total of $1,500,000 over five years on the property, of which $1,000,000 must be spent on drilling. PJX will also issue to the Company up to 200,000 shares.
This transaction compliments Klondike Gold Corp. forward looking strategy of seeking to joint ventures its base metal projects with partners that have the capacity to finance and operate them. Klondike Gold will focus on advancing its gold properties with priority given to its Lone Star project in Yukon Territory.
The Company also announces the purchase of two mining claims from Kootenay Silver Inc. These claims are contiguous with Company’s Hughes Range property located 24 km north-east of Cranbrook, British Columbia. The terms of the agreement are a onetime payment of $10,000, and should either of these two claims go into commercial production the Company will issue 250,000 shares to Kootenay Silver Inc.
About Klondike Gold Corp.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia and Dawson City, Yukon. The Company is focused on the development of its Yukon and British Columbia gold properties. In addition the Company holds a large portfolio of base metal projects in Southeastern British Columbia.
Inquiries: Robert A. Young 604-685-2222 (Ext 398)
Erich Rauguth, President & CEO 604-685-2222
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.