Klondike Gold Announces $2,500,000 Private Placement

Rhea-AI Summary

Klondike Gold Corp. (OTC PINK KDKGF) announced plans to raise up to $2,500,000 through a private placement, comprising flow-through and non-flow-through funds. The flow-through shares will be priced at $0.30 per unit, while non-flow-through units will be offered at $0.25. Each unit includes a warrant exercisable at $0.45 for two years. Proceeds will support exploration of Yukon properties and general working capital. The financing is subject to TSX Venture Exchange approval and may close in tranches.

Positive

• Plans to raise up to $2,500,000 for exploration and general working capital.
• Potential for increased financing with flow-through shares at $0.30 per unit and non-flow-through at $0.25.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / August 25, 2020 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK KDKGF) ("Klondike Gold" or the "Company") is announces that it plans to raise up to $2,500,000 in aggregate of flow-through funds (the "Flow-Through Placement") and non-flow-through funds (the "Non-Flow-Through Placement) by way of a non-brokered private placement (the "Financing").

The Flow-Through Placement will consist of the sale of flow-through shares at a price of $0.30 per flow-through unit with each unit consisting of one common share and one-half of one share purchase warrant.

The Non-Flow-Through Placement will consist of the sale of units at a price of $0.25 per unit, with each unit consisting of one common share and one-half of one share purchase warrant.

Each warrant will entitle the holder to purchase one common share at a price of $0.45 per common share for a period of 2 years from closing (the "Warrants"). The Warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company's share price on the TSX Venture Exchange is equal to or greater than $0.60 for a period of 10 consecutive trading days.

A finder's fee of 7% on the gross proceeds of the Financing may be paid.

The Financing may close in tranches. The Company intends to use the proceeds from the Financing to continue exploration and development of the Company's Yukon properties, as well as for general working capital.

The securities issued in connection with the Financing are subject to TSX Venture Exchange approval and all securities will be subject to a four month statutory hold period after the date of closing.

ON BEHALF OF KLONDIKE GOLD CORP.

"Peter Tallman"

President and CEO
(604) 609-6138
E-mail: info@klondikegoldcorp.com
Website: www.klondikegoldcorp.com

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."

SOURCE: Klondike Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/603185/Klondike-Gold-Announces-2500000-Private-Placement

FAQ

What is Klondike Gold Corp.'s plan for the $2,500,000 funding?

Klondike Gold Corp. plans to use the $2,500,000 from the private placement for exploration of its Yukon properties and for general working capital.

What are the prices for the flow-through and non-flow-through placements by Klondike Gold Corp?

The flow-through shares are priced at $0.30 per unit, while the non-flow-through units are priced at $0.25 per unit.

How long are the warrants from Klondike Gold Corp. valid?

The warrants from Klondike Gold Corp. are valid for two years from the closing of the financing.

What is the warrant exercise price for Klondike Gold Corp. shares?

The warrants allow the holder to purchase one common share at a price of $0.45.

What conditions are attached to the financing of Klondike Gold Corp.?

The financing is subject to TSX Venture Exchange approval and involves a four-month statutory hold period after closing.