Klondike Gold Corp. Announces Gold Project Acquisition and Flow Through Private Placement
FOR IMMEDIATE RELEASE TSX-V: KG December 9, 2010 www.klondikegoldcorp.com
Klondike Gold Corp. Announces Gold Project Acquisition and Flow Through Private Placement
- PROPERTY LOCATED AT INTERSECTION OF DESTOR‐PORCUPINE FAULT AND NORTH‐SOUTH SPLAY
- PLANS IN PLACE TO IMMEDIATELY BEGIN STRIPPING AND DRILLING
VANCOUVER, BC – KLONDIKE GOLD CORP. (TSX‐V: KG) (the “Company”) is pleased to announce, subject to regulatory approval, the acquisition of a 100% interest in the Akweskwa West gold property. This property consists of ten claims (100 units) in Kenogaming Township, Porcupine Mining Division. The property is located approximately 50 km southwest of Timmins, accessible by road and is a key addition to the Company’s gold portfolio.
The property occurs along what may be a splay off the prolific gold‐bearing Destor Porcupine Fault Zone (‘DPFZ’). The DPFZ hosts the world famous Timmins gold camp as well as other gold deposits in the Harker‐Holloway area of Ontario. Potential for gold mineralization may be evidenced by historical gold‐bearing quartz boulders found down glacial ice‐ direction of the properties.
Consideration for the property consists of $55,000 and 450,000 shares, payable over four years. There is a 3% net smelter return payable, one‐third (1%) of which may be purchased for $1,500,000 and the final 1% for a further $1,500,000
The Company also announces that it proposes to raise up to $1,000,000 by way of a brokered private placement through the issuance of up to 4,545,455 units at a price of $0.22 per unit (the "Unit"). Each Unit will consist of one flow through common share and one‐half of one non‐flow through, non‐transferable share purchase warrant (the "Warrant"). Each full Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.27 for a period of two years from closing the private placement. The private placement and any modifications to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay finders' fees in accordance with the policies of the TSX Venture Exchange. A portion of this financing may be non‐brokered with third party investors or brokers.
Proceeds of the private placement will be used to drill a number of targets on the Company’s Irishman project as well as advance its gold projects in the Timmins area of Ontario.
The Company further announces that the private placement announced on November 8, 2010, consisted of both brokered and non‐ brokered financing.
M Partners Inc. has been retained as lead agent in connection with the Offering and as financial advisor to explore strategic alternatives for the Company. M Partners are located in Toronto and Vancouver with over 25 professionals serving the needs of their institutional and retail clients.
About Klondike Gold Corp.
Klondike Gold is a large landholder in southeastern British Columbia as well as in the Klondike District of Yukon Territory, an area which produced between six and twelve million ounces of gold during its historic gold rush. The Company also holds a number of properties near Timmins, Ontario.
Contact Info:
Alan Campbell
Hughes Exploration Group
Phone: (604) 685‐2222 Email: [email protected]
Please visit the Company’s website: www.klondikegoldcorp.com for more information on the diamond properties in Ontario, our holdings in the Klondike and our properties in southeastern BC.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. The statements made in this Press Release may contain forward‐looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.