Vancouver, BC; Klondike Gold Corp.(“the Company”), (TSX-V:KG) is pleased to announce that it has closed the private placement financing announced October 21st, 2011, and also the first tranche of the private placement financing announced October 18th, 2011, resulting in combined receipts of $1,898,000.
In conjunction with these financings, the Company reports that it has completed the share exchange with Lonestar Gold Inc resulting in 80% of Lonestar Gold Inc being now owned by Klondike Gold Corp. (see News Release dated October 18, 2011). This share transaction consolidates Klondike Gold’s position over the 700 quartz lode claims that form the Lone Star Claim Group. The Lone Star Claim Group overlies part of the richest placer gold mineralization recorded worldwide. Despite this up to 80% of the lode claims has received minimal exploration.
Between the years 2004 and 2008 the previous operator, Klondike Star Mineral Corporation spent approximately $12 million on exploration within the claim group. This included soil sampling, trenching and over 8,000 metres of drilling. The Company is now focused on compiling all available information including the previously non-assimilated data collected by Klondike Star.
About The Lone Star Claim Group
Located within the 130 square kilometers of the Lone Star Claim Group are the drainages of Upper Bonanza and Eldorado Creeks which form the core of the famous Klondike Gold Rush of 1898. Together the lower sections of the two creeks are reported to have produced over 3 million ounces of placer gold over a length of approximately 5 miles from their confluence at Grand Forks.
Recent studies conducted by the University of Leeds, in the UK and the Mineral Research Unit of the University of British Columbia confirm that this gold may have originated in the most part from the ground between the Lone Star Ridge and the Violet Ridge.
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.
Erich Rauguth President/CEO
Klondike Gold Corp.
Phone: (604) 639-4535