Vancouver, British Columbia, Canada, September 3, 2019 Klondike Gold Corp. (TSX.V: KG; FRA: LBDP; OTC: KDKGF) (“Klondike Gold” or the “Company”) is pleased to report that the Company has closed a non-brokered flow through private placement financing (the “Financing”) of 1,925,000 flow-through units (each a “FT Unit”) at the price of $0.40 per FT Unit for gross proceeds of $770,000. Each FT Unit is comprised of one common share of the Company, which is a “flow-through” share for Canadian income tax purposes, and one-half of one common share purchase warrant (each a “Warrant”). Each whole Warrant is exercisable to purchase one additional non flow-through common share of the Company at the price of $0.50 per Warrant Share for a period of three years expiring September 3, 2022. The securities issued in connection with this Financing will be subject to a statutory hold period which expires on January 4, 2020.
Peter Tallman, President of Klondike Gold commented “Following the release of excellent drill results of 1,009 g/t Au with 1,035 g/t Ag over 1.0 meter and 8.9 g/t Au over 10.0 meters at Nugget Zone, Yukon, the Company felt it was imperative to keep drilling without further delay This financing provides funding for an extension of the 2019 drill program. An additional 20+ holes are planned to be drilled to test for extensions of positive results obtained as reported in the August 6, 2019 news release. Drilling and related work will now continue into October.”
The net proceeds of the funds raised through the Financing will be used to continue exploration and development of the Company’s Yukon properties.
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp. is a Canadian exploration company with offices in Vancouver, British Columbia, and Dawson City, Yukon Territory. The Company is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza and Eldorado Creeks, within a district scale 563 square kilometer property accessible by government maintained roads located on the outskirts of Dawson City, YT within the Tr’ondëk Hwëch’in First Nation traditional territory.
On behalf of KLONDIKE GOLD CORP.
President and CEO
Neither the 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.
Disclaimer for Forward-Looking Information
“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Klondike in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Klondike’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Klondike disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”