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Klondike Gold Corp (2)
Symbol KG
Shares Issued 116,685,008
Close 2014-01-29 C$ 0.025
Market Cap C$ 2,917,125
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Klondike Gold signs definitive deal for Portuguese sale

2014-01-30 12:24 ET - News Release

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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