Klondike Gold closes $409,000 private placement

NOT FOR DISTRIBUTION TO NEWS WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / September 27, 2024 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTCQB:KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce that, pursuant to its press release dated August 27, 2024, the Company has closed non-brokered private placement financing raising $409,000, of which $278,500 is cash flow (“Private offer‘).

In closing the private placement, the Company issued 2,785,000 flow-through units at a price of $0.10 per flow-through unit, with each flow-through unit consisting of one share of common stock, which is a “flow-through” share for Canadian income tax purposes, and one share purchase order. (“Flow units‘). The Company further issued 1,450,000 units at a price of $0.09 per unit, each unit consisting of one share of common stock and one share purchase warrant (“Units‘).

A total of 4,235,000 share purchase warrants issued in connection with the Private Placement will be exercisable at a price of $0.15 per share until September 27, 2026.

The company also paid a cash finder’s fee of $4,000 and issued 45,000 treasury warrants (“Finder Warrants“), to Eventus Capital Corp. Each Finder Warrant entitles its holder to purchase one common share of the Company (“Finder Warrant Share”) at a price of $0.15 per Warrant Finder share until September 27, 2026.

All securities issued in connection with the First Tranche are subject to a statutory holding period of four months and one day, which expires on January 28, 2025, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

Two Company insiders participated in the private placement and purchased a total of 1,000,000 flow-through units and 950,000 units. Purchases made by these persons 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 because they constitute a distribution of securities for cash and the fair market value of the units issued to the insider and the consideration paid by the insider are not exceeded 25% of the Company’s market capitalization. No new insiders were created and no change of control occurred as a result of the closing of the Private Placement.

The Company intends to use the proceeds of the financing to continue exploration and development of the Company’s Yukon properties, as well as for general working capital.

ABOUT KLONDIKE GOLD CORP.

Klondike Gold is a Vancouver-based gold exploration company with a 100% owned Klondike District Gold Project located in Dawson City, Yukon, one of the most important mining jurisdictions in the world. The Klondike Gold District Project targets gold associated with district-scale orogenic faults across a 55-kilometer stretch of the famous Placer Klondike Goldfields District. Many kilometers of gold mineralization have been identified in, among others, the Lone Star Zone and the Stander Zone. The company has estimated mineral resources of 469,000 indicated and 112,000 estimated gold ounces¹first milestone in the Klondike District. The Company is focused on the exploration and development of its 727-square-kilometer property, accessible by scheduled airlines and government-maintained roads, located just outside Dawson City, Yukon, on the traditional territory of the Tr’ondëk Hwëch’in First Nation.

¹The mineral resource estimate for the Klondike District property was prepared by Marc Jutras, P.Eng., MASc., principal, Ginto Consulting Inc., an independent qualified person, in accordance with the requirements of NI 43-101. A technical report supporting the Mineral Resource Estimate entitled “Technical Report NI 43-101 for the Klondike District Gold Project, Yukon Territory, Canada” has been filed on SEDAR at www.sedarplus.ca effective November 10, 2022. View the release press release December 16, 2022

ON BEHALF OF KLONDIKE GOLD CORP.

“Peter Tallman”
Piotr Tallman
President and CEO

MORE INFORMATION:

Phone: (604) 609-6138
E-mail: [email protected]
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.

Certain statements contained in this press release constitute “forward-looking statements.” When used herein, the words “anticipated,” “expected,” “estimated,” “forecast,” “planned” and similar expressions are intended to identify forward-looking statements or information. These statements are based on management’s current expectations, but are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking statements contained in this press release. Readers are cautioned not to place undue reliance on these statements. Klondike Gold undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, after the date hereof, except as required by securities laws.

Forward-looking statements involve many risks and uncertainties, and actual results may differ materially from those suggested by any forward-looking statements. These risks and uncertainties include, but are not limited to, market volatility; the condition of the Company’s financial securities markets; fluctuations in commodity prices and changes in the Company’s business plans. In making the forward-looking statements contained in this press release, the Company has made several material assumptions that it believes are reasonable, including, without limitation, that the Company will continue to achieve its business objectives and its ability to obtain additional capital to continue. Although the Company’s management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as expected, estimated or intended . There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statements, forward-looking information or financial outlook that are incorporated herein by reference, except in accordance with applicable securities laws. The company is looking for a safe haven.

For more information about the Company, investors should review the Company’s continuous disclosure filings available at www.sedarplus.ca.

SOURCE: Klondike Gold Corp.

View the original press release at accesswire.com