Klondike Gold Closes Financing Raising $352,400

Rhea-AI Summary

Klondike Gold Corp. (OTCQB: KDKGF) has successfully closed the second tranche of its private placement financing, raising $352,400, including $24,900 in flow-through funds. The company issued 1,000,000 non-flow-through units at $0.10 each, with accompanying share purchase warrants exercisable at $0.20 until January 2025. Two insiders acquired 2,900,000 units in what qualifies as a related party transaction, exempt from minority shareholder approval due to the value being below 25% of the company’s market cap. Funds will support exploration in Yukon and general working capital. Additionally, 3,900,000 stock options have been granted to staff, exercisable at $0.10 for five years.

Positive

• Raised $352,400 in private placement financing to support exploration in Yukon.
• Issued 1,000,000 non-flow-through units with potential for increased funding via share purchase warrants.
• Significant stock option grant signaling commitment to staff.

Negative

• None.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / January 24, 2023 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) ("Klondike Gold" or the "Company") is pleased to announce that further to its news release of November 28, 2022, the Company has closed the second tranche (the "Second Tranche") of its non-brokered private placement financing (the "Financing"), raising an aggregate of $352,400 of which $24,900 is flow-through funds.

The Second Tranche

In closing the Second Tranche, the Company issued 1,000,000 non-flow-through units at a price of $0.10 per unit, with each unit comprised of one common share and one share purchase warrant.

A total of 1,000,000 share purchase warrants issued in connection with the Second Tranche are exercisable at a price of $0.20 per share until January 24, 2025.

All securities issued in connection with the Second Tranche are subject to a four month and one day statutory hold period expiring on May 25, 2023, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

Two insiders of the Company participated in the Financing and acquired an aggregate of 2,900,000 units. The purchases by these insiders constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the units issued to, and the consideration paid by, the insiders did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of the Financing.

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.

Stock Option Grant

The Company further announces that pursuant to the Company's incentive stock option plan, 3,900,000 stock options have been granted to certain directors, officers, employees and consultants of the Company. The stock options are exercisable at a price of $0.10 per share for a period of 5 years, subject to regulatory approval.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold is a Vancouver based gold exploration company advancing its 100%-owned Klondike District Gold Project located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike District Gold Project targets gold associated with district scale orogenic faults along the 55-kilometer length of the famous Klondike Goldfields placer district. Multi-kilometer gold mineralization has been identified at both the Lone Star Zone and Stander Zone, among other targets. The Company has identified an Initial Mineral Resource of 469,000 Indicated and 112,000 Inferred gold ounces, a milestone first for the Klondike District. The Company is focused on exploration and development of its 586 square kilometer property accessible by scheduled airline and government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondëk Hwëch'in First Nation traditional territory.

ON BEHALF OF KLONDIKE GOLD CORP.

"Peter Tallman"

Peter Tallman,
President and CEO

FOR FURTHER INFORMATION:

Telephone: (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.

SOURCE: Klondike Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/736642/Klondike-Gold-Closes-Financing-Raising-352400

FAQ

What amount did Klondike Gold raise in its recent financing?

Klondike Gold raised $352,400 in its recent private placement financing.

What is the exercise price for the share purchase warrants issued in the second tranche?

The share purchase warrants are exercisable at a price of $0.20 per share.

How many stock options were granted by Klondike Gold and what is their exercise price?

Klondike Gold granted 3,900,000 stock options, exercisable at $0.10 per share.

What are the intended uses for the proceeds from the private placement?

The proceeds will be used for exploration and development of Yukon properties, and for general working capital.

How does the financing participation by insiders affect Klondike Gold?

The participation by insiders is considered a related party transaction but is exempt from formal valuation as it does not exceed 25% of market capitalization.