Vancouver, British Columbia, February 19, 2015, Klondike Gold Corp. (TSX.V:KG) (“Klondike Gold” or the “Company”) announces receipt of final payment of cash and shares pertaining to the disposition of five gold exploration permits covering 600 square kilometers in northern Portugal to Medgold Resources Corp. (“Medgold”) as per the Definitive Agreement between the companies (see news releases dated December 11, 2013 and January 30, 2014).
Klondike Gold has received a final cash payment of $100,000 and an additional 2,347,418 common shares of Medgold. These shares have a resale restriction until June 14, 2015 as per TSXV policy. Klondike Gold retains a 2% NSR on the exploration permits which may be repurchased for $1.0 million per percentage point. Klondike Gold’s holding in Medgold now totals over 3.1 million common shares.
Peter Tallman, President and CEO of Klondike states “Klondike has divested its interests in Portugal in return for cash plus a meaningful share position in Medgold while retaining a royalty interest. This strategy allows Klondike Gold shareholders indirect participation in a portfolio of prospective European mineral properties while keeping the Company’s financial focus on its core Yukon assets.”
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 its Yukon gold projects located in the historic Klondike region covering 25,000 hectares of hard rock and 2,000 hectares of placer claims including “McKinnon Creek” leased to Todd Hoffman/Jerusalem Mining LLC and featured on the Discovery Channel show “Gold Rush”.
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.”