VANCOUVER, British Columbia -- (Business Wire)
Klondike Gold Corp. (TSX.V:KG) (âKlondike Goldâ or the âCompanyâ)
reports that KLONDIKE GOLD EXTENDS OFFER FOR KLONDIKE STAR SHARES.
Further to its news release of March 24, 2014, Klondike Gold Corp. is
extending its offer to acquire a majority interest in the issued and
outstanding shares of Klondike Star Mineral Corp. (KSMC), a private
Delaware company. Klondike Gold is offering each shareholder of KSMC the
opportunity to exchange each share of KSMC held for 0.25 Klondike Gold
shares. This offer to exchange is subject to shareholders of KSMC
tendering for exchange a minimum of 51 per cent of the outstanding
shares of KSMC. With a total of 68,653,461 shares of KSMC issued and
outstanding, Klondike Gold may issue up to 17,163,365 shares if 100 per
cent of the shares of KSMC are tendered for exchange. The offer was
set to expire on May 6, 2014 and has been extended to June 6, 2014.
Klondike Gold also announces that it has entered into agreements with
certain creditors of KSMC to settle US $1,077,894 of debt owed by KSMC
to related parties upon tender of not less than 70% of the KSMC shares
under the Offer. In settlement of these debts the KSMC related party
creditors will receive an aggregate of 21,557,880 warrants to purchase
shares of Klondike Gold, exercisable at CDN $0.10 per share for 30
months from issuance. Klondike Gold understands that following
settlement of the foregoing liabilities, KSMC will have approximately US
$183,000 in remaining debt.
Peter Tallman, President and Chief Executive Officer of Klondike Gold,
commented: "We continue to work diligently toward acquiring 100% title
ownership in both hard rock and placer claims covering the most renowned
portion of the famed Klondike goldfields. The extension to the offer
allows for the retirement of KSMC trade and other debt obligations, as
well as providing additional time for KSMC shareholders to consider the
details."
ABOUT KLONDIKE GOLD CORP.
Klondike Gold Corp., is a Canadian
exploration company with offices in Vancouver, British Columbia, and
Dawson City, Yukon. The Company is focused on the development of its
Yukon gold properties, and also holds a large portfolio of gold and base
metal projects in southeastern British Columbia.
On behalf of Klondike Gold Corp.
âPeter Tallmanâ
President and CEO
(604) 685-2222
E-mail: info@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
Certain statements in this release are forward-looking statements,
which reflect the expectations of management regarding the acquisition
of the shares of Klondike Star Mineral Corporation ("KSMC") and the
combination of the companies. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future, and include statements regarding: (a) the tender of shares of
KSMC to the Offer by shareholders of KSMC, and acceptance thereof by
Klondike Gold, (b) the acquisition of a minimum of 51% of the issued and
outstanding shares of KSMC by Klondike Gold, and (c) the receipt of
approval from the TSX Venture Exchange for the acquisition of the shares
of KSMC. Such statements are subject to risks and uncertainties that may
cause actual results, performance or developments to differ materially
from those contained in the statements, including: (1) the shareholders
of KSMC do not respond to the Offer or do not tender the minimum 51% of
the shares of KSMC,(2) TSX Venture Exchange approval is not
obtained for the acquisition of the shares or the closing of the
transaction, (3) the inherent uncertainties and speculative nature
associated with the exploration for gold mineralization, including the
actual results of current exploration activities,changes in
project parameters as plans continue to be refined, failure of equipment
or processes to operate as anticipated, accidents or other risks of the
mining industry, (4) a decrease in the demand for and/or a decrease in
the price for gold, (5) any number of events or causes which may delay
or cease exploration and development of the Companyâs property
interests, such as environmental liabilities, weather, mechanical
failures, safety concerns and labour problems, (6) the risk that the
Company does not execute its business plan, (7) inability to retain key
employees, (8) inability to finance operations and growth, (9) an
extended downturn in general economic conditions in North America and
internationally, (10) an increase in the number of competitors with
larger resources, and (11) other factors beyond the Companyâs control.
No assurance can be given that any of the events anticipated by the
forward-looking statements will occur or, if they do occur, what
benefits the Company will obtain from them. These forward-looking
statements reflect managementâs current views and are based on certain
expectations, estimates and assumptions which may prove to be incorrect.
These forward-looking statements are made as of the date of this news
release and the Company assumes no obligation to update these
forward-looking statements, or to update the reasons why actual results
differed from those projected in the forward-looking statements.
Additional information about these and other assumptions, risks and
uncertainties are set out in the âRisks and Uncertaintiesâ section in
the Companyâs MD&A filed with Canadian security regulators at www.sedar.com.
Contacts:
Klondike Gold Corp.
Peter Tallman, 604-685-2222
President
and CEO
info@klondikegoldcorp.com
Source: Klondike Gold Corp.
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