Mr. Peter Tallman reports
KLONDIKE GOLD COMPLETES AGREEMENT FOR DISPOSITION OF PORTUGUESE ASSETS
Klondike Gold Corp. has signed
a definitive agreement with Medgold Resources Corp. for the
acquisition by Medgold of 100 per cent of Klondike's Portuguese assets (see
Klondike news release dated Dec. 11, 2013) comprising five gold
exploration permits covering 600 square kilometres located in northern
Portugal.
The Portugal project combine five exploration licences (Balazar,
Valongo, Legares, Castelo do Paiva and Ponte de Barca), with four
covering the majority of the Valongo geological belt and gold
occurrences, plus Ponte de Barca which covers orogenic gold occurrences,
collectively located in the north of Portugal.
The terms for the acquisition of Klondike's Portuguese assets are as
follows:
-
Payment of $10,000 in cash to Klondike upon signing of the LOI (paid);
-
Payment of $40,000 in cash and 800,000 Medgold shares upon signing of
definitive agreement (paid);
-
A final payment in 12 months of $100,000 in cash and $250,000 in cash
or shares (to be decided by Medgold);
-
On closing of the purchase, Klondike will retain a 2.0-per-cent net smelter returns royalty, which
will be repurchasable for $1.0-million per percentage point.
Peter Tallman, president and chief executive officer of Klondike, states: "Klondike has
divested its interests in Portugal in return for 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."
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