Mr. Peter Tallman reports
KLONDIKE GOLD ANNOUNCES $3,000,000 PRIVATE PLACEMENT
Klondike Gold Corp. has arranged a $3-million non-brokered private placement.
The non-flow-through portion of the offering will consist of a minimum of 9,523,809 units and a maximum of 14,285,714 units of the company at a price of 10.5 cents per unit for aggregate proceeds of a minimum of $1-million and a maximum of up to $1.5-million, which will be offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions. Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling its holder to purchase one additional common share at an exercise price of 20 cents for a period of 24 months from the date of issue. The listed issuer financing exemption (LIFE) offering is expected to be completed in multiple tranches, with the first tranche expected to close on or about March 23, 2023. The securities issued pursuant to the listed issuer financing exemption offering will not be subject to any statutory hold period in accordance with applicable Canadian securities laws.
There is an offering document related to the LIFE offering that can be accessed under the company's profile on SEDAR and at the company's website. Prospective investors should read this offering document before making an investment decision.
The flow-through placement will consist of the sale of a maximum of 17,391,304 flow-through units at a price of 11.5 cents per flow-through unit for aggregate proceeds of up to $2-million, with each flow-through unit consisting of one common share which is a flow-through share for Canadian income tax purposes, and one warrant, with each warrant entitling its holder to purchase one additional common share at an exercise price of 20 cents for a period of 24 months from the date of issue. The securities issued in connection with the flow-through placement are subject to TSX Venture Exchange approval and all securities will be subject to a four-month-and-one-day statutory hold period after the date of closing.
Eventus Capital Corp. has been appointed as a finder in connection with the offering. A finder's fee of 6 per cent cash and 6 per cent finder's warrants will be paid on the gross proceeds of the offering.
The offering may close in tranches. The company intends to use the proceeds from the offering 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 advancing its 100-per-cent-owned Klondike district gold project located at Dawson City, Yukon, one of the top mining jurisdictions in the world. The Klondike district gold project targets gold associated with district scale orogenic faults along the 55-kilometre length of the famous Klondike Goldfields placer district. Multikilometre gold mineralization has been identified at both the Lone Star zone and Stander zone, among other targets. The company has identified an initial mineral resource of 469,000 indicated and 112,000 inferred gold ounces, a milestone first for the Klondike district. The company is focused on exploration and development of its 727-square-kilometre property accessible by scheduled airline and 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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