Mr. Peter Tallman reports
KLONDIKE GOLD CLOSES $770,000 PRIVATE PLACEMENT AND EXTENDS DRILLING
Klondike Gold Corp. has closed a non-brokered flow-through private placement financing of 1,925,000 flow-through (FT) units at the price of 40 cents per FT unit for gross proceeds of $770,000. Each FT unit comprises one common share of the company, which is an FT share for Canadian income tax purposes, and one-half of one common share purchase warrant. Each whole warrant is exercisable to purchase one additional non-flow-through (NFT) common share of the company at the price of 50 cents per warrant share for a period of three years expiring on Sept. 3, 2022. The securities issued in connection with this financing will be subject to a statutory hold period which expires on Jan. 4, 2020.
Peter Tallman, president of Klondike Gold, commented: "Following the release of excellent drill results of 1,009 g/t Au with 1,035 g/t Ag over one metre and 8.9 g/t Au over 10.0 metres at Nugget zone, Yukon, the company felt it was imperative to keep drilling without further delay. This financing provides funding for an extension of the 2019 drill program. An additional 20 plus holes are planned to be drilled to test for extensions of positive results obtained as reported in the Aug. 6, 2019, news release. Drilling and related work will now continue into October."
The net proceeds of the funds raised through the financing will be used to continue exploration and development of the company's Yukon properties.
About Klondike Gold Corp.
Klondike Gold is a Canadian exploration company with offices in Vancouver, B.C., and Dawson City, Yukon. The company is focused on exploration and development of the Lone Star gold target at the confluence of Bonanza Creek and Eldorado Creek, within a district-scale 563-square-kilometre property accessible by government-maintained roads located on the outskirts of Dawson City, Yukon, within the Tr'ondek Hwech'in First Nation traditional territory.
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